Question
One of the principles of using multiples correctly is that one cannot mix-match the numerator with denominator. Both should correspond to the same group of
One of the principles of using multiples correctly is that one cannot mix-match the numerator with denominator. Both should correspond to the same group of claimholders. Which multiple below is a correct example of following this principle?
| a. | Market value of equity/free cash flow to the firm | |
| b. | Enterprise value/net income | |
| c. | Market value of the firm/free cash flow to the equity holders | |
| d. | Market value of equity/book value of equity |
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Analysis For Financial Management
Authors: Robert C Higgins
8th International Edition
0071257063, 9780071257060
