Require a normalization entry

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Which of the following would not require a normalization entry?

A. Excess owner’s compensation

B. An extraordinary item

C. The selling of a discontinued business segment

D. An arm’s length relative party transaction

You calculate a closely held company

A. Using the same techniques and methods as a publicly held company

B. Using the CAPM model

C. Differently than a publicly held company

D. By calculating Beta

Which statement is true?

A. A closely held company usually does not require normalization entries

B. Requires trend analysis to help determine a capitalization rate

C. Capitalization rates and discounts rates are exactly the same

D. Valuation uses only the last year’s revenue to determine future revenue

Reference no: EM13790639

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