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Choosing Parameters and Assumptions for Valuation

- For companies with fast growth rates: Companies with fast growth rates often use most of their profits to expand production and business, in order to maintain a high growth rate. Therefore, using the dividend discount valuation method will not be feasible. If investors have a complete business ...

The Role of Asset Valuation

(ii) According to the contribution principle, a component of an asset may be valued very highly, but in the market, this component of the asset is widely sold at a very low price. In that case, the assessment must be based mainly on the supply and demand principle and the substitution principle. ...

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