- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 25. Private Company Valuation
- Subject 8. Valuation Discounts and Premiums
CFA Practice Question
DLOM can be estimated based on:
II. Private sales of stock in companies prior to a subsequent IPO.
III. Free cash flow comparisons between a public and a private company.
IV. The pricing of put options.
I. Private sales of restricted stock in public companies relative to their freely traded share price.
II. Private sales of stock in companies prior to a subsequent IPO.
III. Free cash flow comparisons between a public and a private company.
IV. The pricing of put options.
Correct Answer: I, II and IV
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