Which measure of value is most relevant for the analyst instructed to select financially sound companies that are expected to generate significant positive free cash flow from core business operations within a multiyear forecast horizon. Investment value Liquidation value Going-concern value If an investment company's research process requires analysts to evaluate the reasonableness of the expectations implied by the market price by comparing the market's implied expectations to his or her own expectations, then the compary's analysts are expected to use valuation concepts and models to: render faimess opinions. value private businesses. extract market expectations. Consider the valuation of a fast-growing tech company that is rapidly gaining market share, but is not expected to be profitable for several more years. According to management guidance, for an extended period of time after the company turns profitable, it will invest in positive NPV projects (i.e, new product development) instead of initiating a dividend. Larger competitors will very likely become interested in acquiring the company because of its excellent growth prospects. Which valuation model would be consistent with the characteristics of the company being valued? P/E relative valuation Dividend discount Free cash flow You are researching XMI Corporation (XMI). XMI has shown steady earnings per share growth (18 percent a year during the last seven years) and trades at a very high multiple to earnings (its P/E is currently 40 percent above the average P/E for a group of the most comparable stocks). XMI has generally grown through acquisition, by using XMI stock to companies to immediately pay all pending accounts payable, whether or not they are due. Subsequent to the acquisition, XMI reinstitutes normal expense 10 The statement is made that XMI's "P/E is currently 40 percent above the average P/E for a group of the most comparable stocks." What type of valuation model is implicit in that statement? (choose all which are correct) That is an example of the method of comparables. That is an example of a relative valuation model