An advantage of the book value of equity plus adjustments approach is:
A)that it implicitly assumes that a firm is going to be shut down.
B)it doesn't consider the firm being valued as an ongoing concern.
C)we can immediately "plug in" the starting point of the book value of equity without having to do any calculations.
D)All of the above.

Question

Quizplus · Accepted Answer

The advantage of the book value of equity plus adjustments approach is that we can easily use the starting point of the book value of equity without having to do any calculations. Option A and B are incorrect as the approach does not assume that the firm will be shut down and it does consider the firm being valued as an ongoing concern.

An Advantage of the Book Value of Equity Plus Adjustments