The valuation process includes the following EXEPT A.) understanding the business or asset B.) deciding the valuation model to be used C.) discounting past cashflow D.) forecasting financial performance of the valuation object
The valuation process includes the following EXEPT A.) understanding the business or asset B.) deciding the valuation model to be used C.) discounting past cashflow D.) forecasting financial performance of the valuation object
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 1RE
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The valuation process includes the following EXEPT
A.) understanding the business or asset
B.) deciding the valuation model to be used
C.) discounting past cashflow
D.) forecasting financial performance of the valuation object
Which statement regarding relative valuation is true?
A.) The value of a share of a hotel business can be compared to the value of a share of an airline business.
B.) Relative valuation is often focused on current ratios that can be used to compare similar assets or entities.
C.) Relative valuation using book values is more accurate than using market values.
D.) Peer group average allows the comparison of multiple pairings of similar entities, (e.g., A vs B, B vs C, and A vs C)
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