- CFA Exams
- CFA Exam: Level II 2021
- Study Session 11. Equity Valuation (3)
- Reading 31. Private Company Valuation
- Subject 8. Valuation discounts and premiums
CFA Practice Question
If a 15% control premium is assumed, the associated DLOC is:
B. 13%.
C. 11%.
A. 15%.
B. 13%.
C. 11%.
Correct Answer: B
DLOC = 1 - 1/1.15 = 13%.
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