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Basic Question 2 of 5
______ is the price which a knowledgeable, willing and unpressured buyer would pay to a knowledgeable, willing, and unpressured seller in an open and unrestricted market.
B. Market value.
C. Fair value.
A. Fair market value.
B. Market value.
C. Fair value.
User Contributed Comments 2
| User | Comment |
|---|---|
| warnggg | Why not MV? |
| michaelcfa | @warnggg: The market value is determined by supply and demand. It is not necessarily a fair number. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
explain the income, market, and asset-based approaches to private company valuation and factors relevant to the selection of each approach;
explain cash flow estimation issues related to private companies and adjustments required to estimate normalized earnings;
CFA® 2025 Level II Curriculum, Volume 4, Module 25.