Research by Kaplan and Ruback Found That

question 7

Multiple Choice

Research by Kaplan and Ruback found that:

• A) Median estimates of the DCF were within 10% of the market values
• B) Comparable multiples yielded significantly higher values than DCF measures
• C) Comparable multiples yielded significantly lower values than DCF measures
• D) None of the above

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Definitions:

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default.

Credit Obligations

The responsibilities to repay debt incurred through borrowing or credit agreements.

Partially Assembled

Refers to products or goods that have been partially put together but require additional assembly or work to be considered complete.

Raw Logs

Unprocessed timber that has been cut but not yet transformed into lumber or other finished products.