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T/F question 1,A company forecast to have zero economic value added (EVA) forever, will be trading at EV/Capital ratio equal to one. (All else equal.)

T/F question

1,A company forecast to have zero economic value added (EVA) forever, will be trading at EV/Capital ratio equal to one. (All else equal.)

2,In the context of relative valuation, it makes sense to use the equation PB = 3 (2 ) to adjust a company's PB ratio for differences in . (Assuming statistical significance.)

3,In practice, we can find a firm's net profit margin by dividing the firm's PS ratio by the firm's PB ratio.

4,In the framework of relative valuation, if two companies have the same EV/S ratios then both firms will generally have different P/S ratios.

5,A firm's EV/EBITDA ratio will always be greater than the same firm's EV/EBIT ratio.

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