Compare and contrast the weighted average and simple average methods of converting historical earnings data to a single proxy benefit.
Answer to relevant QuestionsWhy is the purpose of the valuation important?Why are different parties likely to disagree on the factors that impact value?Identify and discuss the eight valuation factors set forth in Rev. Rul. 59– 60 (Sec. 4).1. When developing a single proxy benefit, prior years’ cash flows should be weighted if the earnings stream displays a consistent trend and un-weighted if there is no identifiable pattern. a. True b. False 2. To determine ...Obtain IRS Revenue Ruling 59– 60 through the IRS web site. Read this Ruling and prepare a memo to your professor explaining how each of its eight valuation factors fits into the theory of business valuation as discussed in ...
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