Regarding the valuation of privatized businesses in less developed countries, ____ can normally be estimated with a high degree of accuracy.

Question

Quizplus · Accepted Answer

Valuation of privatized businesses in less developed countries may be challenging due to the lack of strong financial data and uncertainty in economic and political conditions. Therefore, it may be difficult to estimate future cash flows and exchange rate movements accurately. Similarly, determining the appropriate discount rate may also be challenging as it depends on several factors such as the country's risk premium and inflation rates, which are difficult to predict in less developed countries. Thus, the best choice is none of the above.

Regarding the Valuation of Privatized Businesses in Less Developed Countries