CFAI book Page 294 How are the weights assigned to each estimated takeover value decided? Why do we need to over-weight cash flow per share? Thanks!
He assumed this because he believed cash flows are important predictor of values for THESE types of companies. (Paragraph 2, pg 294) If not mentioned in the question, you will assign equal weights for each value estimated, in other words, take an average.
Thanks! - so maybe they will give us the % weight in the exam…I was wondering where to get those weights…