Which of the Following Is Not Used in Relative Valuation

question 12

Multiple Choice

Which of the following is not used in relative valuation comparisons?

• A) The relative value measure from past periods.
• B) The relative value measure for the industry under consideration.
• C) The relative value measure for a comparable firm.
• D) The relative value measure derived from the DCF model.

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Definitions:

Legislative Action

The process by which a legislative body enacts laws, including the proposal, debate, amendment, and voting on new laws or changes to existing laws.

President

The head of state and/or head of government in a republic, typically elected to be the chief executive officer and hold the highest office in the land.

Multiplier

An economic factor that quantifies the additional economic activity generated from an initial injection of spending.

Equilibrium Real GDP

is the level of Gross Domestic Product where aggregate demand equals aggregate supply, resulting in a stable economy without inflationary or recessionary gaps.