- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 27. Private Company Valuation
- Subject 8. Valuation Discounts and Premiums
CFA Practice Question
The pre-IPO studies, which examine the prices of transactions while the company was still private, compared to the eventual IPO price, are used to estimate:
A. DLOC
B. DLOM
C. Control premium.
Explanation: These studies have reported average DLOMs generally to be around 45%.
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