Explain why it is difficult to value a young, rapidly growing company.
QUESTION
Explain why it is difficult to value a young, rapidly growing company.
involve determining the number of years that the firm will take in order to be profitable. The firms that become valuable in a short period of time are more valuable than the firms that take a longer time to be profitable. Thus it is difficult to value a startup firm because of lack of information.
ANSWER:
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