Which of the following statements about the method of multiple in price multiple

valuation is CORRECT?

a. It relates multiples to company fundamentals using a discounted cash flow (DCF) model.

b. It assumes that cash flows are related to fundamentals

C.

It discounted dividend of all future

d. It values an asset relative to a benchmark value of the multiple

One goal of all risk management systems should be to;

a. eliminate all risk, ie., reduce risk to zero,

b, bring the level of risk to a desired level of risk, which may exceed zero

make risk level equal market risk

d. maximize the risk level