Question
Am I right with my response here - need some guidance/coaching: Comparable Company Analysis (CCA) and Comparable Transaction Analysis (CTA) are useful components of the
Am I right with my response here - need some guidance/coaching:
Comparable Company Analysis (CCA) and Comparable Transaction Analysis (CTA) are useful components of the science and art of M&A valuation and triangulation efforts. Please answer the following True-False answers, circling T or F for your answers below:
1. All else equal, CTA will generally lead to lower valuations than CCA. True
2. To account for differences in leverage across comparable companies, False
first construct an estimated enterprise value and then subtract debt to arrive at an equity value. 3. CCA provides an estimate of synergy value that is lacking in CTA. False
4. Adjustments to a target's beta will be needed in valuing synergies. True
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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