Question #30
Reading: Reading 19 Equity Valuation - Applications and Processes
PDF File: Reading 19 Equity Valuation - Applications and Processes.pdf
Page: 11
Status: Unattempted
Correct Answer: B
Question
Minority shareholders often do not have control of the price at which the firm will be sold or merged with another firm. In order to safeguard their interests, minority shareholders will often seek an analyst's opinion of the value of the firm. This opinion is referred to as a:
Answer Choices:
A. second opinion
B. minority opinion
C. fairness opinion
Explanation
Minority shareholders are often dependent upon an analyst's opinion about the fairness
of a price to be received. Hence the term fairness opinion.