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Can you please explain the difference between sales, revenue and turnover?
Can you also explain what does terminal value mean in consolidation?
Sales, revenue and turnover are different words for the same thing.
Terminal value is not a standard term in consolidations. (Have you watched my free lectures on consolidations? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
Yeah, i watched them. But can you explain what is terminal value and what it exactly means?
Secondly, please explain the difference between fair value and market value?
And lastly, could you mention the factors that influence the real worth of the business that is considered before any business take over the other!?
Thank you so much!
I don’t understand why you are asking questions that are not relevant for Paper FA.
Terminal value means final value but more depends on the context.
Fair value takes into account the future earning potential of an asset whereas market value is the price at which it can currently be sold.
As far as the ‘real worth’ of business is concerned, there are many factors – a major one being the future potential earnings. However this is relevant for later exams, not Paper FA, and this is the Paper FA forum.
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