Which of the following would not require a normalization entry?
A. Excess owner’s compensation
B. An extraordinary item
C. The selling of a discontinued business segment
D. An arm’s length relative party transaction
You calculate a closely held company
A. Using the same techniques and methods as a publicly held company
B. Using the CAPM model
C. Differently than a publicly held company
D. By calculating Beta
Which statement is true?
A. A closely held company usually does not require normalization entries
B. Requires trend analysis to help determine a capitalization rate
C. Capitalization rates and discounts rates are exactly the same
D. Valuation uses only the last year’s revenue to determine future revenue