In which three of the following situations are asset values particularly useful?
A) When discounted income flow techniques are difficult to apply
B) When a firm is in financial difficulty
C) When used in relation to takeover bids
D) When used in relation to companies that are not primarily valued on the basis of their assets

Question

Quizplus · Accepted Answer

Asset values are particularly useful in situations where discounted income flow techniques are difficult to apply due to unpredictable future incomes, when a firm is in financial difficulty as assets might need to be liquidated to cover debts, and in the context of takeover bids where the acquiring company assesses the value of the target's assets.

In Which Three of the Following Situations Are Asset Values