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Which of the following statements is FALSE? A It is common practice to use valuation multiples based on a firm?s enterprise value. B. Using a
Which of the following statements is FALSE? A It is common practice to use valuation multiples based on a firm?s enterprise value. B. Using a valuation multiple based on comparables is best viewed as a shortcut to the discounted cash flow method of valuation. C. We can compute a firm?s price - earnings ratio by using either trailing earnings or forward earnings with the resulting ratio called the trailing price - earnings or forward price - earnings, D. As the enterprise value represents the entire value of a firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows after interest payments are made
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