When Finding Crude PER, the Valuer Makes Certain Assumptions, One

question 39

Multiple Choice

When finding crude PER, the valuer makes certain assumptions, one being that valuation P0 consists of two parts. What are the two parts?

• A) Value of earnings assuming no growth
• B) Value of growth in earnings
• C) Net value of equity and debt
• D) Value of the asset base

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Definitions:

Paralytic Ileus

A condition where there is a lack of movement in the intestines that can cause a build-up and potential blockage of food material, leading to a temporary stop in bowel movements.

Stomatitis

An inflammation of the mouth and lips, which can cause redness, swelling, pain, and sometimes sores in the oral cavity.

Volvulus

A medical condition in which a loop of the intestine twists around itself and the mesentery that supports it, causing an intestinal blockage.

Gastroesophageal Reflux Disease

A chronic digestive disease in which stomach acid or bile irritates the food pipe lining.