statement 2

问题如下：

Olsen makes the following three statements about GTM approach:

1. The GTM approach works well for valuing FDF because it uses a multiple that specifically relates to sale of entire companies. Statement of Financial Accounting Standard (SFAS) No. 157 presents a fair value hierarchy that gives the highest priority to market-based evidence.

2. Most appraisers readily accept the valuation from the GTM approach because of the reliability of transactions data.

3. The market approach to determine the value of equity is appropriate even for companies with highly leveraged financial conditions or significant volatility expected in future financial performance.

Which of Olsen’s three statements about the GTM approach is most accurate?

选项：

A.

1

B.

3

C.

2

解释：

The GTM approach uses a multiple that specifically relates to the sale of entire companies and SFAS No. 157 also presents a fair value hierarchy that gives the highest priority to market-based evidence. Additionally, in the United States, tax courts assessing private company valuations have generally stated a preference for valuation based on market transactions although they often accept valuations based on the income approach.