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Exam F3 All Questions
Exam F3 All Questions

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CIMA Strategic F3 Question # 50 Topic 6 Discussion

F3 Exam Topic 6 Question 50 Discussion:
Question #: 50
Topic #: 6

An unlisted company:

    Is owned by the original founder and member of their families.

    Is growing more rapidly than other companies in the same industry.

    Pays a fixed annual divided

Which of the following methods would be the most appropriate to value this company’s equity?


A.

P/E ratio of a listed company in the same industry.


B.

Divided valuation method.


C.

Asset based approach including intangibles.


D.

Discounted cash flow analysis based on forecast future free cash flows.


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