Why does the Precedent Transactions valuation method typically yield higher valuations?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 53% (13 reviews)
The Precedent transaction multiples are based on completed MA transactions where a buye...View the full answer
Answered By
Bhartendu Goyal
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions. I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life. I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge. I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields. Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a tea...
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
Question Posted:
Students also viewed these Corporate Finance questions
-
Why do callable bonds typically have a higher yield to maturity than noncallable bonds, holding all other things constant? Is the yield differential between callable and noncallable bonds likely to...
-
Why do interest rates on consumer loans typically average higher than on most other kinds of loans?
-
Why do firms with diverse shareholder bases typically pay higher dividends than private firms or public firms with more-concentrated ownership structures? How are fixed dividends used as a bonding...
-
Matheny Inc. went public 3 years ago. The board of directors will be meeting shortly after the end of the year to decide on a dividend policy. In the past, growth has been financed primarily through...
-
Using diagrams of the market for capital, determine the effect of the following events on market interest rates: a. Consumers increase their saving rate. b. Advances in nanotechnology reduce firms'...
-
Rose Ubens, buys and sells goods. Her trial balance is presented below. R. Ubens Trial Balance as at 31 December 2001 Debit Credit E Opening stock 3,600 Building 20,400 Motor van 3,500 Debtors 2,600...
-
Define corporate strategy. LO1
-
Office Express sells office suppliers to businesses on a membership basis-i.e., walk-in customers without a membership are not allowed. The company delivers supplies directly to the purchaser as long...
-
Blossom Services, Inc. is trying to establish the standard labor cost of a typical brake repair. The following data have been collected from time and motion studies conducted over the past month. \...
-
Matt and Meg Comer are married and file a joint tax return. They do not have any children. Matt works as a history professor at a local university and earns a salary of $67,300. Meg works part time...
-
Explain how agency problems may lead to non-value-maximizing motives for mergers. Discuss the various academic theories offered as the rationale for these agency probleminduced motives.
-
Would a large technology company and a large conglomerate (that operates in many industries) be good comparable firms for a multiples-based valuation? Why or why not?
-
What are the two major activities of the Consumer Credit Counseling Service?
-
Find the average value fave of the function f on the given interval. f(x) = x (x3+10) 2' [-1, 1] fave = | X
-
Hickman Aviomes's actual sales and purchases for April and May are shown here along with forecasted sales and purchases for Jane theough September April(actual) May cactual) Jane (forecast) July...
-
Togo's Sandwiches acquired equipment on April 1, 2024, for $18,000. The company estimates a residual value of $2,000 and a five- year service life. Required: 1. Calculate depreciation expense using...
-
Change the session date to July 8, 2024. Create shortcuts or change modules and enter the following transactions. NOTE: Deposits and withdrawals, except credit card transactions, use Bank: Chequing...
-
Determine the intervals on which the function f(x) = 1 x + 2/3 4 3 -x - 1 2 - -2x is increasing and the intervals on which it is decreasing. f(x) is increasing for x = (-2, -1) U (1,) and decreasing...
-
Edwards Inc. experienced the following events: 1. Issued common stock for cash. 2. Declared a cash dividend. 3. Issued noncumulative preferred stock for cash. 4. Appropriated retained earnings. 5....
-
The ultimate goal of Google, Bing, and other consumer search engines is to provide users with search listings that contain useful information on the topic of their search. What recommendations would...
-
What are the provisions of the Companies Act regarding depreciation on low-value items?
-
Jason wants to open a checking account with a $ 100 deposit. Jason believes he will write 15 checks per month and use other banks ATMs 8 times a month. He will not be able to maintain a minimum...
-
Casey has $ 1,000 to invest in a certificate of deposit. Her local bank offers her 2.5% on a 12- month FDIC- insured CD. A nonfinancial institution offers her 5.2% on a 12- month CD. What is the risk...
-
Mike, a recent college graduate, opened a checking account with a local bank. He asked numerous questions before deciding on this bank, including inquiring about checking account fees and annual...
-
Randy (48) takes a $22,000 distribution from his IRA to pay some of his daughter's $28,000 qualified education expenses at an eligible educational institution. His daughter paid $18,000 of her...
-
The takeover specialist chose to use the value derived from dividend discount model, while the directors prefer to use Net Realisable Value approach. Critically discuss the reasoning of each parties...
-
Tony and Suzie graduate from college in May 2021 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon...
Study smarter with the SolutionInn App