"When a business is non-operating or has been generating losses, and the company's focus is holding investments or real estate." Which method of valuation is best used in this case ?

CS Executive · Corporate and Management Accounting · PYQS · December 2021
"When a business is non-operating or has been generating losses, and the company's focus is holding investments or real estate." Which method of valuation is best used in this case ?
(A) Discounted cash flow model
(B) Asset approach
(C) Earning based model
(D) Capital asset pricing model

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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