CFA CFA Level 1 Question of the Week – Equity

Question of the Week – Equity

  • This topic has 4 replies, 3 voices, and was last updated Apr-18 by artyeasel.
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    • AdaptPrep
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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
    • AdaptPrep
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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.

    • policedog
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      But why not tangible assets as well?

    • AdaptPrep
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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.

    • artyeasel
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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. 🙂

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