Final answer:
Large diversified businesses often face a d. conglomerate discount which results from analysts not knowing how to value a vast array of large businesses with complex financial reports.
Step-by-step explanation:
Large diversified businesses often face a d. conglomerate discount which results from analysts not knowing how to value a vast array of large businesses with complex financial reports.
A conglomerate discount refers to the situation where the market values a conglomerate company at a lower value than the sum of its individual business units. This discount occurs because investors find it challenging to understand and assess the financial performance of the conglomerate's diverse businesses and therefore apply a discount to their valuation.