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Which of the following statements concerning the valuation of forms using the method of comparable trades is (are) true? Valuation multiples take into account differences

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Which of the following statements concerning the valuation of forms using the method of comparable trades is (are) true? Valuation multiples take into account differences in the risk and future growth between the firms being compared. Investors will pay somewhat less for each dollar of earnings if those earnings are expected to grow. For stock valuation, the method of multiples has a more solid economic foundation than discounting cash flows. When we use this method, we estimate the value of a firm based on the value of other. comparable forms or investments that we expect will generate very similar cash flows in the future The most common valuation multiple is the price carnings ratio

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