tailieunhanh - Accountants’ Handbook Special Industries and Special Topics 10th Edition_18

Tham khảo tài liệu 'accountants’ handbook special industries and special topics 10th edition_18', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | SOURCES AND SUGGESTED REFERENCES 42 27 investors give little if any weight to book value in appraising the securities of companies with the high rates of earnings on capital that are characteristic of this industry. It should also be noted that we have not used a discounted future benefits approach because ABC s prospective growth rates are roughly comparable to those of the guideline companies. The adjusted valuation ratios are therefore a reflection of both the growth rate and the capitalization rate appropriate to ABC Snack Foods Inc. on the valuation date. Dividing the preliminary value of 62 382 000 by the 100 000 shares outstanding results in a freely traded value the price at which the stock would trade in an active market of 624 per share. The fact that the ABC stock lacks ready marketability must be reflected by a discount for lack of marketability. We think that a discount of 30 is appropriate. This results in a value for the common stock of 437 per share. It is our conclusion that a block of 20 000 shares had a fair market value of 437 per share as of March 31 2009 or 8 740 000 for the entire block. SOURCES AND SUGGESTED REFERENCES Blackman L. The Valuation of Privately-Held Businesses. Probus Publishing Chicago 1986. Brown Ronald L. Valuing Professional Practices and Licenses A Guide for the Matrimonial Practitioner. Prentice-Hall Englewood Cliffs NJ 1987. Burke Frank M. Jr. Valuation and Valuation Planning for Closely-Held Businesses. Prentice-Hall Englewood Cliffs NJ 1981. Ibbotson Roger A. Stocks Bonds Bills and Inflation. Ibbotson Associates Chicago 1989. Internal Revenue Service IRS Valuation Guide for Income Estate Gift Taxes. Commerce Clearing House Chicago 1985. ------- Revenue Ruling No. 59-60. . Treasury Dept. Washington DC. Maher J. Michael Discounts for Lack of Marketability for Closely-Held Business Interests Taxes The Tax Magazine September 1976 pp. 562-71. Moroney Robert E. Most Courts Overvalue Closely Held Stocks Taxes The