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Disadvantages of the Comparable Industry Method of Valuation Include the Presumption

question 38

True/False

Disadvantages of the comparable industry method of valuation include the presumption that industry multiples are actually comparable and that analysts' earnings projections are unbiased.


Definitions:

Unethically

In a manner that violates moral principles or established standards of conduct.

Wrongdoing

The act of doing something that is illegal, unethical, or morally incorrect.

Rationalization

The process of attempting to explain or justify behavior or an attitude with logical reasons, even if these are not appropriate.

Virtues

Characteristics or qualities considered morally good or desirable in a person, such as integrity, courage, honesty, and compassion.

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