Determining the discount rate for the practice is not easy. Which of the following factors is not relevant in the decision?

Question

Quizplus · Accepted Answer

The number of principals in the current practice is not a relevant factor in determining the discount rate. The discount rate is primarily influenced by external factors such as economic conditions, the nature of the client book of business, stability of cash flows, and the size of the business. The number of principals in the current practice does not directly impact these factors.

Determining the Discount Rate for the Practice Is Not Easy