1. Market value of equity is an objective measure which clearly shows what:

A) The firm's financial statements show the firm's value to be.

B) Investors think is the firm's value.

C) Stock analysts calculate as the firm's value.

D) Is the sales value of the firm.

E) Is the liquidation value of the firm.

2. The discounted cash flow (DCF) method of valuation uses the discounted present value of cash flow so it is not subject to the bias of different:

A) Discount rates.

B) Internal rates of return.

C) Monetary systems.

D) Accounting policies for determining total assets and net income.

E) None of the answer choices is correct.

3. If an earnings multiplier is not available for a given firm, the multiplier used in an earnings-based method of valuation of a firm is often estimated from comparable:

A) Taxable entities.

B) Industries.

C) Firms.

D) For-profit firms.

E) Publicly-held firms.