Question

If the information is publicly available and reasonably comparable, the best measure of the FMV of any business is that of a comparable market transaction.

Another option is to consider public equity market data for comparable companies with publicly traded shares.

a) Comparable market transactions are rarely considered.
b) Public equity market data is not useful.
c) Comparable market transactions are the best measure of FMV.
d) Public equity market data is the only option.

Answer 1

Comparable market transactions are the best measure of FMV, but public equity market data can also be useful.

Step-by-step explanation:

The best measure of the fair market value (FMV) of a business is a comparable market transaction or public equity market data for comparable companies with publicly traded shares. While both options are useful, the best measure of FMV is often considered to be comparable market transactions. Public equity market data can also provide valuable information. For example, if there is a recent sale of a similar business in the same industry, with similar size and financials, that transaction can provide a good indication of the FMV. Additionally, looking at the stock prices of publicly traded companies in the same industry can also give insights into the FMV of a business. However, it is important to consider other factors as well, such as the specific circumstances and financials of the business being valued.