Why is the Equity Valuation method is preferable from the point of view of an investor in valuing the business?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 8DQ: How does the equity method discourage the manipulation of net income by investors?
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Why is the Equity Valuation method is preferable from the point of view of an investor in valuing the business?

 

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