You are going to analyze ABC company using a DCF and EBITDA multiples, based on a minority view. The company is publically- traded and you might buy some shares if you think is it undervalued. You notice that the owner pays herself $4 million/ year although the competitive amount would be $500 thou. Another analyst is preparing an analysis for a takeover bid of ABC on a control basis. How should each analyst treat the owners salary?

Adjust the salary down to $500 thou for each analysis

B. Adjust the salary down only for the control case

C. Do not adjust the salary in any case; it reflects actual results

D. Best to use a revenue multiple only in your work to avoid this issue