The Factor Approach

question 3

Multiple Choice

The factor approach:

• A)uses the net tangible asset value in valuation.
• B)is used only for insurance purposes.
• C)uses earnings,dividend capacity,and book value.
• D)assesses the comparable publicly held companies to determine the company's worth.

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Definitions:

Glacier

A large mass of ice, formed from compacted layers of snow, that moves slowly over land.

Erosion

The process by which the surface of the Earth is worn away by the action of water, wind, or ice.

Terminal Moraine

Glacially carried sediment that accumulates at the terminus (end) of a glacier and a landform composed of such material; generally marks the glacier’s farthest downhill extent.

Recessional Moraine

A moraine that forms as the front of a glacier melts back and stagnates for some time in one location, depositing a pile of sediment.