You calculate a closely held company A.           Using the same techniques and methods as a publicly held company B.           Using the CAPM model C.           Differently than a publicly held company D.           By calculating Beta Which statement is true? A.           A closely held company usually does not require normalization entries B.           Requires trend analysis to help determine a capitalization rate C.           Capitalization rates and discounts rates are exactly the same D.           Valuation uses only the last year Solution 1) You calculate a closely held company A.           Using the same techniques and methods as a publicly held company 2) Which statement is true? B.           Requires trend analysis to help determine a capitalization rate 3) Which statement is false? B.           You should examine related party transactions more closely than most other transactions 4) Which statement about beta is true? Beta measures the risk of a company relative to the stock market in general .

1. You calculate a closely held company
A. Using the same techniques and methods as a publicly held company
B. Using the CAPM model
C. Differently than a publicly held company
D. By calculating Beta
Which statement is true?
A. A closely held company usually does not require normalization entries
B. Requires trend analysis to help determine a capitalization rate
C. Capitalization rates and discounts rates are exactly the same
D. Valuation uses only the last year
Solution
1) You calculate a closely held company
A. Using the same techniques and methods as a publicly held company
2) Which statement is true?
B. Requires trend analysis to help determine a capitalization rate
3) Which statement is false?
B. You should examine related party transactions more closely than most other
transactions
4) Which statement about beta is true?

2. Beta measures the risk of a company relative to the stock market in general