Which of the Following Statements Is FALSE

question 25

Multiple Choice

Which of the following statements is FALSE?

• A)The fact that a firm has an exceptional management team,has developed an efficient manufacturing process,or has just secured a patent on a new technology is ignored when we apply a valuation multiple.
• B)Valuation multiples have the advantage that they allow us to incorporate specific information about the firm's cost of capital or future growth.
• C)For firms with substantial tangible assets,the ratio of price to book value of equity per share is sometimes used.
• D)Using multiples will not help us determine if an entire industry is overvalued.

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Definitions:

HR Department

The division within a company or organization that is focused on activities related to employees, including hiring, training, benefits, and workplace policies.

Centralized

A system or structure where decision-making authority is concentrated at a single point or in a single group, often within the upper levels of an organization.

Training and Development

The process by which an organization enhances the skills, capabilities, and knowledge of its employees through formal and informal educational methods.

Human Resources

The department within an organization responsible for managing all aspects related to employees, including recruitment, training, benefits, and compliance.