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Answer: Current assets, as these valuations are effective for firms with substantial current assets and liabilities.
Asset-based valuation models are most effective for companies with a high proportion of **current assets** and **current liabilities**, as these assets have readily determinable market values. Conversely, **illiquid assets** (Option A) and **intangible assets** (Option C) pose challenges due to their lack of marketability or difficulty in valuation, making them less suitable for this approach.
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Asset-based valuation models are most suitable for companies with a significant proportion of:
A
Illiquid assets, which lack easily determinable market values and complicate asset valuation methods.
B
Current assets, as these valuations are effective for firms with substantial current assets and liabilities.
C
Intangible assets, which are challenging to value and often excluded from asset-based models.
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