Regarding the valuation of privatized business in less developed countries,__________ can normally be estimated with a high degree of accuracy.
A) future cash flows
B) future exchange rate movements
C) the proper discount rate
D) none of the above

Question

Quizplus · Accepted Answer

None of the given options can be estimated with a high degree of accuracy in less developed countries. The lack of reliable historical data and uncertain economic and political conditions make it challenging to make accurate forecasts for future cash flows and exchange rate movements. Estimating the proper discount rate can also be difficult due to the high level of country risk associated with investing in less developed economies.

Regarding the Valuation of Privatized Business in Less Developed Countries,__________