Which of the Following Valuation Methods Takes the Earnings (Or

question 61

Multiple Choice

Which of the following valuation methods takes the earnings (or projected earnings) of a small business and multiplies that figure by the market premium of companies in the industry?

• A)Asset-based valuation
• B)Capitalization of earnings valuation
• C)Market estimation valuation
• D)Discounted future net cash flow valuation

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