Under What Circumstances Might It Be More Appropriate to Use

question 95

Essay

Under what circumstances might it be more appropriate to use relative valuation methods rather than the DCF approach? Be specific.

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Definitions:

Goods

Tangible products or merchandise that are manufactured, bought, and sold in commerce.

Services

The action of helping or doing work for someone, often producing intangible benefits.

Unearned Revenue

Income received by an entity for services or products yet to be delivered or performed.

Liabilities

Liabilities or amounts due by a corporation to third parties or people outside the organization.