Question #29
Reading: Reading 24 Private Company Valuation
PDF File: Reading 24 Private Company Valuation.pdf
Page: 16
Status: Correct
Correct Answer: A
Question
The asset-based approach values a firm based on:
Answer Choices:
A. investment values
B. fair values
C. book values
Explanation
The asset-based approach values firm equity as the fair value of its assets minus the fair
value of its liabilities.