Question 11 (3 points) Price to earnings multiples are primarily used to value public company and does not apply to private companies. 1) True 2) False Question 12 (3 points) The following ratio measures a company's returns to investors 1) cash flow O2) inventory turns 3) price / earning 4) coverage 5) valuation Question 13 (3 points) There are primarily two ways to finance a business, through debt or an equity. 1) True 2) False Question 14 (3 points) Free cash flow valuation is calculated as follows: 1) PV for FCF planning period + PV residual value = FCF value O 2) Working capital = Current operating assets - Current liabilities 3) FCF = EBITDA - Capital expenditures 4) Adjusted EBITDA = EBITDA + Seller's Salary - Buyer's Salary 5) None are correct