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1. In comparable companies' valuation method, the first step is selecting comparable companies in terms of industry, profitability, size etc. a. True b. False 2.

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1. In comparable companies' valuation method, the first step is selecting comparable companies in terms of industry, profitability, size etc. a. True b. False 2. For most companies, there are many similar sized comparable (or similar) companies in the same industry. a. True b. False 3. In comparable companies' valuation (i.e., multiples valuation) method, multiples are usually value-tocharacteristic ratios of a company of interest like price to earnings ratio. a. True b. False 4. In IT Staffing case, the potential comparable companies in the list are staffing companies. a. True b. False 5. Given that comparable companies are from the same industry, finding companies with similar profitability in percentage is the critical step in identifying the comparable companies. a. True b. False

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