Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer this asap Which of the following statements is (are) FALSE? Select one or more alternatives: A possible disadvantage of using multiples to value

please answer this asap
image text in transcribed
Which of the following statements is (are) FALSE? Select one or more alternatives: A possible disadvantage of using multiples to value a company is that it may be difficult to find enough comparable companies. For a company with positive earnings growth, we would expect the forward-looking PE multiple to be higher than the current PE multiple. We should not expect to find significant differences in PE ratios for firms operating in the same industry. The EV/Sales multiple may be more appropriate for valuing companies that are making a loss than the PE multiple

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

blur-text-image

Step: 3

blur-text-image

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

Free Dollar For College For Dummies

Authors: David Rosen, Caryn Mladen

1st Edition

0764554670, 978-0764554674

More Books

Students also viewed these Finance questions

Question

=+b) What are the possible values it can take on?

Answered: 1 week ago

Question

Relational Contexts in Organizations

Answered: 1 week ago