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Which of the Following Is the Best Approach to Determine

Question 20

Multiple Choice

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:

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