Schweser says that Guideline Transaction Method of entire companies already include control premium so don’t need to adjust for that. But in the CFA mock, afternoon session, question 53, they did add in the control premium. Is that right? The similar transactions are for fams just like the one in the questions so why are they adjusting for control premium?
They do? I have done it but I couldnt’ recall. For sure, we never adjust control premium for GTM method. Even under GPM, if it’s stock based and strategic merger, we don’t adjust for control premium. Text book must be right.