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:

GAAP

Generally Accepted Accounting Principles; a set of rules and standards for financial reporting used in the United States.

Prime Costs

The combined total of direct labor and direct materials cost incurred in the manufacturing of products.

Direct Materials

Raw materials that are directly traceable to the production of a specific product and are an integral part of the finished product.

Indirect Materials

Materials used in the production process that cannot be directly linked to a specific product, such as lubricants and cleaning supplies.