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Title: Which of the following statements concerning the valuation of firms using the method of comparables is FALSE? Post by: yuknam on Jul 7, 2019 Which of the following statements concerning the valuation of firms using the method of comparables is FALSE?
▸ If two different firms generate identical cash flows, the Law of One Price will imply that both firms have the same value. ▸ Two firms that sell very similar products or offer very similar services will have different values if they are of different sizes. ▸ Comparables adjust for scale differences when valuing similar firms. ▸ Valuation multiples take into account differences in the risk and future growth between the firms being compared. Title: Which of the following statements concerning the valuation of firms using the method of comparables is FALSE? Post by: tlaster on Jul 7, 2019 Valuation multiples take into account differences in the risk and future growth between the firms being compared.
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