FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question

A common mistake that can occur in valuing a target would be:

Group of answer choices

Applying the acquirer’s growth rate in revenues to the target’s sale levels.

Applying the acquirer’s cost of capital in the target’s evaluation equation.

Applying the acquirer’s price-earnings ratio to the target’s earnings.

All of these choices.

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