Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Valuation is a skill set that is necessary only for (Answer not in lecture or sl

ID: 2784787 • Letter: V

Question

Valuation is a skill set that is necessary only for (Answer not in lecture or slides but you should know from our readings and guest lectures) 8. Investment bankers who may want to assess the value of acquisitions or IPOs Management consultants who want to provide good corporate finance advice CFOs who want to understand what drives the value of their businesses a. b. c. d. Investors who want to find cheap and expensive stocks Entrepreneurs who have to negotiate with buyers and VCs about the values of their e. businesses All of the above f.

Explanation / Answer

The correct answer is f - All of the above.

Whether it is an investment banker, or CFO, management consultant or investors they should all have the basic knowledge of valuation as this skill will help them in understanding about the nature of business, their advantages, and synergies and above all how much worth is the business if any investment needs to be done. Accordingly, it is very necessary that all the above category of person have the basic knowledge of valuation.

Furthermore, advanced knowledge of valuation is required by investment bankers and management consultants because they help the companies and the investors in making investment decisions and arrive at a conclusion about the earnings capacity of the business.