answer 7,8

7. The value of a private business that expects to make the transition to a public company will be A. sooner; higher B. later; higher C. sooner; lower 8. In private company valuation, there seems to be a rule of thumb that the illiquidity discount is between 20-30% and does not vary across private firms. However, illiquidity should be affected by: 1. State of economy II. Buyer's investment horizon Size of the private company IV. Asset tangibility of the private company III. A. I & II B. II & III C. All of the above