Prospective data are more commonly used to value closely held companies.

Name: Prospective data are more commonly used to value closely held companies.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Prospective data, which involves future projections and forecasts, is indeed used in valuing closely held companies, but historical data is more commonly relied upon because it provides a tangible record of the company's performance. Prospective data is subject to uncertainty and speculation.

Prospective Data Are More Commonly Used to Value Closely Held