The valuation process includes the following EXEPT A.) understanding the business or asset B.) deciding the valuation model to be used C.) discounting past cashflow D.) forecasting financial performance of the valuation object

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter3: Financial Statements, Tools, And Budgets
Section: Chapter Questions
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The valuation process includes the following EXEPT

A.) understanding the business or asset
B.) deciding the valuation model to be used
C.) discounting past cashflow
D.) forecasting financial performance of the valuation object
 
Which statement regarding relative valuation is true?
A.) The value of a share of a hotel business can be compared to the value of a share of an airline business.
B.) Relative valuation is often focused on current ratios that can be used to compare similar assets or entities.
C.) Relative valuation using book values is more accurate than using market values.
D.) Peer group average allows the comparison of multiple pairings of similar entities, (e.g., A vs B, B vs C, and A vs C)
 
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