16. John Meower wants to sell 20% of the ownership of Meower's to a private equity fund. He is exploring different ways of valuing the investment. He decides to price it based on an earnings multiple of 10x because many other similar businesses are trading at 10x and they all follow U.S. GAAP. So, 10x Net income of $155k, equals $1.55 million. 20% of that works out to be $3.1 million. a. This method might not be acceptable because other companies might pay larger dividends. b. This method might not be acceptable because other companies might be located in different regions. c. This method might not be acceptable because other companies might capitalize costs that Meower expenses. Use the followina financial statement excernts for auestions 13-17: 16. John Meower wants to sell 20% of the ownership of Meower's to a private equity fund. He is exploring different ways of valuing the investment. He decides to price it based on an earnings multiple of 10x because many other similar businesses are trading at 10x and they all follow U.S. GAAP. So, 10x Net income of $155k, equals $1.55 million. 20% of that works out to be $3.1 million. a. This method might not be acceptable because other companies might pay larger dividends. b. This method might not be acceptable because other companies might be located in different regions. c. This method might not be acceptable because other companies might capitalize costs that Meower expenses. Use the followina financial statement excernts for auestions 13-17