An analysis of student-managed funds’ operations in 35 universities in the U.S. was conducted with the data collected through an Internet-based survey. The results indicate that CAPM is used in most SMFs as the means to estimate the required rate of return. Value Line and Wall Street...

For the most part, closely-held firms must be valued using proxies for market data which are not available. Valuation approaches described in the literature are used by practitioners with exceptions demanded by circumstances. Results of the survey confirm statements of others that substantial...

There are about 24 million businesses in the United States, with something less than one-tenth of one percent actively traded. This case is hypothetical, but the valuation issues pertaining to many of those closely-held firms are real. The case illustrates an income statement adjustment,...

This paper contains a review of issues pertaining to the valuation of privately held businesses, noting significant inconsistencies in the rationale and approaches taken in the valuation process. In addition to suggesting that appraisers stay with the "tried and true" rather than testing the...