What Is an Exit Valuation

question 16

Multiple Choice

What is an exit valuation?

• A) Value of the business at the time of exit, IPO or acquisition
• B) Value of the business after your 5 year projections
• C) The industry average value of companies in your industry of the same age
• D) The amount of money investors are willing to invest

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Definitions:

Income Distribution

How a nation’s total GDP is distributed amongst its population.

Income Effect

Refers to the change in an individual's or economy's income and how that change will impact the quantity demanded of a good or service.

Substitution Effect

The change in quantity demanded as consumers switch to or from alternatives when the price changes.

Labor-Leisure Framework

A model in economics that illustrates the trade-off between labor, supplying work for income, and leisure, the time spent not working.