Enterprise Multiples

CFA Level II Equities
#1

Hi Guys

I’ve noticed the same question on Enterprise Multiples in two separate mock exams but the solution has different answers which is wierd.

So it’s Q41 in the 2015 CFA Mock AM compared to Q53 2013 CFA Mock PM.

If anyone has encountered the same issue, please let me know what the correct answer is?

Thanks

#2

I noticed the same thing and the wording appears to be identical. Its difficult to determine either way which is right since we don’t know the average control premium on the 9.0x multiple to adjust it up/down to 30%…

On the test I hope it is better worded but I would probably multiply the average by 30% if its worded like “Company x demands an additional 30% control premium” or something like that.

Cheers!