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
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
Chapter3: Financial Statements, Tools, And Budgets
Section: Chapter Questions
Problem 3DTM
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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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