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CHAPTER 17 Fundamental Principles of Relative Valuation Question 3: The chapter noted that multiples have skewed distributions. a. What is meant by skewed distributions? b.

CHAPTER 17 Fundamental Principles of Relative Valuation

Question 3: The chapter noted that multiples have skewed distributions.

a. What is meant by skewed distributions?

b. Why do multiples generally have skewed distributions?

c. What are the implications for analysts who might use industry averages to compare firms?

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