CFA Practice Question

There are 201 practice questions for this study session.

CFA Practice Question

Control premium adjustment is necessary in the:

I. Guideline public company method.
II. Guideline transactions method.
III. Prior transaction method.
A. I only
B. I, II and III
C. II only
Explanation: In the guideline transactions method the control premium is already included in the multiples. The prior transaction method is most relevant for the valuation of minority interest in a company.

User Contributed Comments 1

User Comment
richmondo Good question - it caught me out
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