How does the VC method estimate exit values, and what are two standard corporate finance approaches to account for debt in valuation? O VCM relies on financial projections, while corporate finance uses DCF and CAPM. VCM uses comparable IPOS or acquisitions, while corporate finance uses APV and WACC. O VCM applies multipliers based on sales, EBIT, or net earnings, while corporate finance uses DCF and APV. O VCM considers enterprise performance, while corporate finance focuses on equity valuation.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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How does the VC method estimate exit values, and what are two standard corporate finance approaches to account for
debt in valuation?
O VCM relies on financial projections, while corporate finance uses DCF and CAPM.
VCM uses comparable IPOs or acquisitions, while corporate finance uses APV and WACC.
VCM applies multipliers based on sales, EBIT, or net earnings, while corporate finance uses DCF and APV.
VCM considers enterprise performance, while corporate finance focuses on equity valuation.
Transcribed Image Text:How does the VC method estimate exit values, and what are two standard corporate finance approaches to account for debt in valuation? O VCM relies on financial projections, while corporate finance uses DCF and CAPM. VCM uses comparable IPOs or acquisitions, while corporate finance uses APV and WACC. VCM applies multipliers based on sales, EBIT, or net earnings, while corporate finance uses DCF and APV. VCM considers enterprise performance, while corporate finance focuses on equity valuation.
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