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bklm1234 bklm1234
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A year ago
Which of the following statements regarding market multiple analysis is correct?


▸

While the market multiple analysis applies valuation concepts in a precise manner, focusing on expected cash flows, the discounted dividend method is more judgmental.



▸

Market multiple analysis applies a market-determined multiple to net income, earnings per share, sales, book value, or, for businesses such as cable TV or cellular telephone systems, the number of subscribers.



▸

The EBIT multiple is based on total value since EBIT measures the entire firm’s performance. So, it is called an entity multiple.



▸

We can estimate a company’s total value by dividing the company’s EBITDA by its market multiple.

Textbook 
Financial Management: Theory and Practice

Financial Management: Theory and Practice


Edition: 4th
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prospectjayprospectjay
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A year ago
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bklm1234 Author
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A year ago
Thank you, thank you, thank you!
sweetalia
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Correct Slight Smile TY
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Just got PERFECT on my quiz
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