1) What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations?
I thought that the traditional pricing model was surprising because event though both enterprises the same net worth and salaries, the net earnings are different therefore making the pricing different.
2) Identify at least one part of the reading that was confusing to you.
I was confused when the author was explaining the differences between the price earnings ratio method and the discounted earnings method. They both put values on companies but I guess they do it in different ways.
3) If you were able to ask two questions to the author, what would you ask? Why?
How can two different business be valued the same yet one of them not be able to make sufficient returns? I was confused by this.
How can a business owner do the final valuation of the company without one of the elements that was talked about in the reading? What if they don't know about accuracy of projections or control factors?
4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
I don't think I spotted anything that I disagreed with in this reading. The author did a good job of explaining things, especially by going over the terminology definitions when talking about letters of intent or LOIs.
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