This topic contains a solution. Click here to go to the answer

Author Question: Which of the following statements regarding market multiple analysis is correct? (Read 91 times)

sreghbsidhgjbndskijgnio

  • Full Member
  • ***
  • Posts: 155
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.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by sreghbsidhgjbndskijgnio on Aug 7, 2023

Asfa

  • Full Member
  • ***
  • Posts: 166
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly




sreghbsidhgjbndskijgnio

  • Member
  • Posts: 155
Reply 2 on: Aug 7, 2023
Gracias!


sultana.d

  • Member
  • Posts: 320
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

For a complete list of videos, visit our video library