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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Definitions:

Natural Chemicals

Substances produced by living organisms found in the natural environment, often having biological activity.

Deadly

Capable of causing death or serious harm to living organisms.

Physical Hazard

A condition in the environment or surroundings that has the potential to cause injury or harm to humans, animals, or property.

Hurricane

A type of tropical cyclone characterized by a low-pressure center, thunderstorms, strong winds, and heavy rain, causing significant weather-related events like floods.