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Author Question: Which of the following is NOT a negative attribute of the price-earnings multiple valuation model? ... (Read 37 times)

SGallaher96

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on: Jul 11, 2018
Which of the following is NOT a negative attribute of the price-earnings multiple valuation model?
 
  A) It implicitly assumes that comparable firms are already fairly pried in the market place.
  B) Its focus on earnings may be clouded by dubious accounting assumptions.
  C) It is based on relative market measures rather than book measures.
  D) It cannot be used when there are negative earnings. (This would imply a firm value of less than 0)

Question 2

Huey Looz had an unpaid balance of 200 on his credit account last month. This month he charged 100 and made a payment of 20. Using the previous balance method and an APR of 18, Huey owes 2.70 interest this month.
 
  Indicate whether the statement is true or false


sultana.d

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Reply #1 on: Jul 11, 2018
Answer to Question 1

C

Answer to Question 2

FALSE


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