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9) During class we discussed the components of relative valuation (numerator and denominator). One important consideration is to make sure that you're consistently defining the

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9) During class we discussed the components of relative valuation (numerator and denominator). One important consideration is to make sure that you're consistently defining the multiple that you're using. If you were comparing a company that borrows significant amounts of debt to repurchase shares against a company that has no debt, what would be the problem with using a metric such as Price-to-EBITDA? (4 pts) 10) As a new and growing company, Uber has had net losses for many years. Say that Uber is projected to turn a profit in 2022. What valuation metric would you use to compare Uber against other players in the same industry? And why? (4 pts)

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