Which of the following represent advantages of the comparable companies' valuation method?
A) Uses the most accurate market-based valuation at a point in time
B) Valuations need to be adjusted to reflect control premiums
C) Adjusts for risk of future cash flows
D) Adjusts for the timing of future cash flows
E) A & B only

Question

Quizplus · Accepted Answer

The comparable companies' valuation method uses the most accurate market-based valuation at a point in time, which is considered an advantage. The other options listed, B, C, and D, are not advantages of this specific valuation method.

Which of the Following Represent Advantages of the Comparable Companies