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johnpaech johnpaech
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6 years ago
Which of the following statements is FALSE?
A) Because the enterprise value represents the entire value of the firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows after interest payments are made.
B) We can compute a firm's P/E ratio by using either trailing earnings or forward earnings with the resulting ratio called the trailing P/E or forward P/E.
C) It is common practice to use valuation multiples based on the firm's enterprise value.
D) Using a valuation multiple based on comparables is best viewed as a "shortcut" to the discounted cash flow method of valuation.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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EgorGruzdevEgorGruzdev
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#1
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6 years ago
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johnpaech Author
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6 years ago
this is exactly what I needed
mmmm_dat_userna
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Yesterday
You make an excellent tutor!
cartoon
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2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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