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Exam Code: NS0-520

Exam Name: NetApp Certified Implementation Engineer - SAN, ONTAP

Version: V15.35

Q & A: 208 Questions and Answers

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When valuing an unlisted company, a P/E ratio for a similar listed company may be used but adjustments to the P/E ratio may be necessary.
Which THREE of the following factors would justify a reduction in the proxy p/e ratio before use?
A. Unlisted companies being generally smaller and less established.
B. The forecast earnings growth being relatively higher in the unlisted company.
C. A profit item within the unlisted company's latest earnings which will not reoccur.
D. The relative lack of marketability of unlisted company shares.
E. A lower level of scrutiny and regulation for unlisted companies.
F. Control premium not being included within the proxy p/e ratio used.
Answer: A,D,E

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