CFA Practice Question

There are 290 practice questions for this topic.

CFA Practice Question

A DLOM may not be appropriate if the private company:

A. is pursuing a strategic sale.
B. has no prospect for a liquidity event.
C. has not paid dividends and will not do so in the near future.
Correct Answer: A

The timing of a potential liquidity event is a key consideration for valuation discounts.

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