Exercise 2. Do you agree that there really are many situations in which closely held companies need to be valued because of desired of required sale of some portion of the ownership? Explain.

Exercise 5. Describe some situations given rise to the need for valuations.

Exercise 7. Group these valuation approaches into asset based income approach, and market approach types.

a. Adjusted book value method.

b. Capitalization of earnings method.

c. discounted future earnings method

d. Guideline Public Company method

e. Merger and acquisition method.

f. Rules of thumb approach.

Exercise 8. Define these terms:

a. Historical Cost.

b. Replacement Cost

c. Intrinsic Value.

d. Fair market value

e. Discount future earnings method

f. Capitalization of earnings method