Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 25, 2020

A number of different models may be used to value different companies. Which of these would be most appropriate for a newly growing technology firm

A number of different models may be used to value different companies. Which of these would be most appropriate for a newly growing technology firm which does not pay dividends and does not have many tangible assets?

a) price/book multiple b) free cash flow to equity model c) asset-based valuation model

Step by Step Solution

★★★★★

3.45 Rating (168 Votes )

There are 3 Steps involved in it

Step: 1

The correc... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Portfolio Theory and Investment Analysis

Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann

9th edition

9781118805800, 1118469941, 1118805801, 978-1118469941

More Books

Students also viewed these Finance questions

Question

★★★★★

Which database method would be most appropriate for ticket sales at thirty different outlets to an assigned seating concert? Why?

Answered: 1 week ago

Question

★★★★★

Which initial-pricing strategy would be most appropriate for a risky innovative product? Explain your reasoning.

Answered: 1 week ago

Question

★★★★★

Which depreciation method would be most appropriate for each of the following assets? a. This machine is used as a backup to the other machines in the production process. As a result, there are some...

Answered: 1 week ago

Question

★★★★★

Which of the following pairs of steps in the programming process is in the correct order? a. Code the program, plan the logic b. Test the program, translate it into machine language c. Put the...

Answered: 1 week ago

Question

★★★★★

Parallel Axis Theorem Consider a lamina S of mass m together with parallel lines L and L( in the plane of S. the line L passing through the center of mass of S. Show that if I and I' are the moments...

Answered: 1 week ago

Question

★★★★★

How can hospitality organizations create processes and information technology infrastructures for more effective management and for enhancing performance and productivity? What is required? What...

Answered: 1 week ago

Question

★★★★★

What is the role of cognition and thought in learning?

Answered: 1 week ago

Question

★★★★★

On January 1, 2016, Hart Company issued bonds with a face value of $150,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of...

Answered: 1 week ago

Question

★★★★★

A firm evaluates all of its projects by using the NPV decision rule. a. At a required return of 28 percent, what is the NPV for this project? b. At a required return of 34 percent, what is the NPV...

Answered: 1 week ago

Question

★★★★★

Ye Olde Creamery, a popular ice cream store on campus, has one line for its tasty treats. Students arrive at the Creamery about one every minute. Because of the new automated Wave N Pay payment...

Answered: 1 week ago

Question

★★★★★

The balance in the Accumulated Depreciation account represents the O amount to be deducted from the cost of the plant asset to arrive at its fair market value O cash fund to be used to replace plant...

Answered: 1 week ago

Question

★★★★★

Find the annual depreciation using SYD method. A Computer Company has purchased some computers worth $5,000,000. It cost them $200,000 to transport the Computer to their location. The Company...

Answered: 1 week ago

Question

★★★★★

Jennifer Lopez owned four speedboats named Porpoise, Priscilla, Providence, and Prudence. On April 2, Jennifer made written offers to sell the four boats in the order named for $4,200 each to Aiden,...

Answered: 1 week ago

Question

★★★★★

Following the discovery of the collapsed storage racking, no one secured the scene. (a) Why is it important to secure the scene of this near miss? Note: You should support your answer, where...

Answered: 1 week ago

Question

★★★★★

From information below work out the Total Control Cost (TCC) = _$____________ Annual expected savings: $550 Combined control effectiveness: 50% Annual covered loss: $950

Answered: 1 week ago

Question

★★★★★

Refer to Figure 12-4. Potential GDP equals $500 billion. The economy is currently producing GDP1 which is equal to $400 billion. If the MPC is 0.8, then how much must autonomous spending change for...

Answered: 1 week ago

Question

★★★★★

Two suppliers are available for one of the supplies used in Leslie's manufacturing process. One supplier is priced substantially lower, but when product is purchased, it seems that labor costs go up....

Answered: 1 week ago

Question

★★★★★

Determine the resultant moment produced by the forces about point O. 0.25 m 0.125 m, 0 0.3 m- 60 F = 500 N F = 600 N

Answered: 1 week ago

Question

★★★★★

Consider the one-period growth model shown in Equation. Assume the next period's dividend is $1, that stockholders require a 12% return, that new investment is expected to yield 14%, and that the...

Answered: 1 week ago

Question

★★★★★

Assume your preference function P is P = C1 + C2 + C1C2. Plot the location of all points with P = 50, P = 100.

Answered: 1 week ago

Question

★★★★★

Discuss a trading strategy to utilize information such as that analyzed by Davies and Canes (1978). How low would transaction costs have to be for the rule to be profitable? How would risk affect the...

Answered: 1 week ago

Question

★★★★★

3. Think about the three ethics approach to moral reasoning. Which of the three approaches do you adopt when thinking about moral issues? Does it depend on the particular issue?

Answered: 1 week ago

Question

★★★★★

2. Find someone from a different culture and ask about the sleeping arrangements for babies in his or her culture. Are the sleeping arrangements similar or different from what is practiced in your...

Answered: 1 week ago

Question

★★★★★

3. The research reviewed in this chapter shows the difficulty of measuring such a complex phenomenon as attachment. The Strange Situation, the most widely used measure of attachment, has been...

Answered: 1 week ago

Previous Question Next Question