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Question

Valuation is _______________.

A
Sophisticated guess work
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B
An exact science
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C
Not related to the future
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D
Certain
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Solution

The correct option is A Sophisticated guess work
Valuation determines the economic value of a business, asset or company. Although the goal is to determine the fair market value, there is no one way to be certain of the ultimate price paid. Sometimes a company must provide a value of its assets or company as whole to raise debt also.

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