Which of the following is the best approach to determine the fair value of the non-controlling interest under the fair value enterprise method?
A) If a control premium is unlikely, use an implied value based on the consideration paid by the parent
B) Use the market value of the outstanding subsidiary shares (not owned by the parent) .
C) Use a valuation model based on the subsidiary's discounted cash flows.
D) Use the share price paid by the parent.
Correct Answer:
Verified
Q15: When the parent forms a new subsidiary:
A)
Q16: A negative acquisition differential:
A) is always equal
Q17: Which of the following statements pertaining to
Q18: A Co. has acquired an 80% controlling
Q19: HRN Enterprises Inc. (HRN) purchases 80% of
Q21: Parent Inc. and Sub Inc. had
Q22: Parent Inc. and Sub Inc. had
Q23: In the event of a negative acquisition
Q24: If the non-controlling interest at acquisition is
Q25: When a contingent consideration arising from a
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