CFA CFA Level 1 Question of the Week – Equity

Question of the Week – Equity

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    • Avatar of AdaptPrepAdaptPrep
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        Asset-based valuations work well for companies that have a large amount of its value in:

        • Intangible assets
        • Short-term assets
        • Tangible, illiquid assets
      • Avatar of AdaptPrepAdaptPrep
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          Tangible assets are not necessarily easy to value. Likewise, illiquid assets are generally harder to value than liquid or short-term assets.

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          this is a good example of a question where you have two possible solutions, and therefore should think about what works best. 🙂

        • Avatar of AdaptPrepAdaptPrep
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            The asset-based valuation model works the best for a company
            that has easy-to-value assets and liabilities. That would include most short-term assets.

          • Avatar of policedogpolicedog
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              But why not tangible assets as well?

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