ommon mistake that can occur in valuing a target would be: Group of answer choices Applying the acquirer’s growth rate in revenues to the target’s sale levels. Applying the acquirer’s cost of capital in the target’s evaluation equation. Applying the acquirer’s price-earnings ratio to the target’s earnings. All of these choices

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter13: Valuation: Earnings-based Approach
Section: Chapter Questions
Problem 12QE
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A common mistake that can occur in valuing a target would be:

Group of answer choices

Applying the acquirer’s growth rate in revenues to the target’s sale levels.

Applying the acquirer’s cost of capital in the target’s evaluation equation.

Applying the acquirer’s price-earnings ratio to the target’s earnings.

All of these choices.

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