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5. Explain how the corporate valuation model and the adjusted present value (APV) method are used to estimate the value of a target company. If
5. Explain how the corporate valuation model and the adjusted present value (APV) method are used to estimate the value of a target company. If someone did a complete and careful analysis of a given target using both of these methods, would they produce the same results? Explain why, under certain growth and capital structure conditions, it is better to use the APV method.
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