EEM

CFA Level II Equities
#1

I do not get to properties of the Excess Earnings Method:

1.The EEM allows for valuing working capital, fixed assets, and intangible assets using different discount rates.

How is that, how does it use different discount rates?

  1. EEM is only rarely used in pricing entire private businesses.

Should not EEM a method of closely, privately held companies?

#2

Does anyone get this question!