Question
1) A company forecast to have negative economic value added (EVA) forever, will be trading at EV/Capital ratio that is smaller than one. (All else
1) A company forecast to have negative economic value added (EVA) forever, will be trading at EV/Capital ratio that is smaller than one. (All else equal.)
True or False
2) In the framework of relative valuation, if two companies have the same P/E ratios then both firms will generally have different EV/EBITDA ratios.
True or False
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Financial Markets And Institutions
Authors: Jeff Madura
6th Edition
0324162618, 978-0324162615
