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Basic Question 1 of 6

A DLOM may not be appropriate if the private company:

A. is pursuing a strategic sale.
B. has no prospect for a liquidity event.
C. has not paid dividends and will not do so in the near future.

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Edward Liu

Edward Liu

Learning Outcome Statements

explain and evaluate the effects on private company valuations of discounts and premiums based on control and marketability;

CFA® 2025 Level II Curriculum, Volume 4, Module 25.