Discounts And Premiums Flashcards
What is the level of value for the following:
Acquisition method - public company
Control
Marketable
What is the level of value for the following:
Acquisition method - private
Control
Nonmarketable
What is the level of value for the following:
Adjusted book value method
Control
Marketable
What is the level of value for the following:
Liquidation method
Control
Marketable
What is the level of value for the following:
Cost to create
Control
Marketable
What is the level of value for the following:
Capitalization of benefits methods
Control or minority
Marketable or nonmarketable
What is the level of value for the following:
Discounted future benefits method
Control or minority
Marketable or nonmarketable
What is the level of value for the following:
Excess earning method
Control
Marketable or nonmarketable
What is the level of value for the following:
Guideline public company method
Control or minority
Marketable
What is the discount for lack of control ratio?
1 - [1/(1+ average premium paid)]
This derives the discount which is then multiplied by the control amt per share. This gives you the discount that is subtracted from total.
