Which level of value is the lowest in the levels of value chart?
AControlling interest
BMarketable minority
CStrategic interest
DNon-marketable minority
Answer & Solution
Correct answer: D. Non-marketable minority
Non-controlling stakes in private companies lack a ready market and so sit at the lowest level.
Keep practising Business Valuation
Browse all Business Valuation questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
How is marketability of a business interest defined?A controlling interest is defined as an investor acquiring more than what share of a compaWhich level of value is lowest for equity interests in a private firm?A buyer pays a 100% control premium over the minority price. What is the implied minority A private firm valued using listed-peer multiples is usually adjusted for what?In the guideline public company method, the comparison with listed firms is expressed as wWhy is the asset-based approach weak for a going concern?Why do some critics doubt the objectivity of the WACC method?