If a company valuation occurs on April 30, what discount period should be used for the stub period?

The correct choice reflects the appropriate discount period for the stub period in a discounted cash flow (DCF) valuation where the valuation date is April 30.

In this scenario, the stub period refers to the portion of the year left from the valuation date until the end of the fiscal year, which is typically December 31. Since April 30 is four months into the year, there are eight months remaining until the end of the year.

To determine the fraction of the year represented by the stub period, you would take the remaining months (8) and divide it by the total number of months in a year (12). This calculation yields a stub period of approximately 0.67.

Therefore, the correct answer is derived from this standard time-frame calculation method, representing the period from the valuation date to the end of the fiscal year.