An Advantage of Using Comparables to Value a Firm Is

question 63

Multiple Choice

An advantage of using comparables to value a firm is that

• A)the inputs are more objective and more readily verifiable than those used in an NPV analysis.
• B)there are always a large number of good value-relevant attributes that can be used.
• C)if a firm is publicly traded, there are always a large number of similar firms that can be used for comparables
• D)All of the above are advantages of using comparables to value a firm.

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Definitions:

Maturational Crisis

A crisis resulting from experiencing a new stage of life or a new role that requires significant adjustment in one’s self-concept or behavior.

Recurring Crisis

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