Which of the Following Approaches to Share Valuation Is Not

question 93

Multiple Choice

Which of the following approaches to share valuation is not based on a multiple of some figure from the financial statements?

• A) The price to earnings approach.
• B) The price-to-cash-flow approach.
• C) The price-to-sales approach.
• D) The dividends- and- earnings approach.

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Definitions:

Special-interest Effect

Describes how policy decisions can be influenced by small groups who stand to gain substantially, often at the expense of the larger population.

Taxpayers

Individuals or entities legally obligated to pay taxes to governmental authorities.

Unorganized Interest Effect

Impact or influence arising from a group or sector that lacks formal representation or structure in lobbying or policy-making processes.

Electrical Appliances

Devices operated by electricity that are used for household functions such as cooking, cleaning, or personal care.