Which of the following methods is commonly used to establish a floor value for the company?
A) dividend payout method
B) capitalization of earnings method
C) net asset value method
D) guideline transaction method

Question

Quizplus · Accepted Answer

The net asset value method is commonly used to establish a floor value for a company by determining its value based on the total value of its assets minus the total value of its liabilities. This method provides a baseline value by assessing the company's tangible and financial assets.

Which of the Following Methods Is Commonly Used to Establish