This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following statements concerning the valuation of firms using the method of comparables is FALSE? (Read 67 times)

segrsyd

  • Hero Member
  • *****
  • Posts: 530
on: Jul 9, 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.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by segrsyd on Jul 9, 2019

tennis14576

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jul 9, 2019
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


segrsyd

  • Hero Member
  • *****
  • Posts: 530
Reply #2 on: Jul 9, 2019
Thank you!


tennis14576

  • Sr. Member
  • ****
  • Posts: 334
Reply #3 on: Jul 9, 2019
Always glad to help...


« previous next »
 

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

The Sun in false-color ultraviolet image The Sun in false-color ultraviolet image
Ratings of Perceived Contradictions in Political Statements Ratings of Perceived Contradictions in Political Statements
Examples of Mission Statements Examples of Mission Statements
Cloning into M13 and sequencing by the Sanger method Cloning into M13 and sequencing by the Sanger method
Derivative using delta method Derivative using delta method
Solve the solution set of the following system using Graphical Method. Solve the solution set of the following system using Graphical Method.
Video: Isovolumetric VC, Ventricular ejection, Isovolumetric & Passive ventricular filling

For a complete list of videos, visit our video library