Each One of the Following Is a Method for Directly

question 72

Multiple Choice

Each one of the following is a method for directly measuring the value of a firm's equity except:

• A)The discounted cash flow method.
• B)Market value.
• C)Sales multiple.
• D)Earnings-based valuation.
• E)Enterprise value.

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Definitions:

Illusory Contract

An agreement that fails to bind at least one of the parties due to the lack of a definite promise or because the terms allow for withdrawal without consequence.

Adequacy Of Consideration

The principle that the value exchanged in a contract must be fair and reasonable to both parties involved.

Fraud

Intentional misleading to achieve illicit benefits or to cheat someone out of their rightful entitlement.

Big Five

A personality model that outlines five major traits used to describe human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.