Which of the Following Statements About the Comparable Companies' Valuation

question 37

Multiple Choice

Which of the following statements about the comparable companies' valuation method is not true?

• A) Requires the use of firms that are "substantially" similar to the target firm
• B) Uses market based rather than cash flow based valuations
• C) Often used as the basis of investment banker fairness opinions
• D) Generally provides the most accurate valuation method
• E) Provides an estimate of the target firm at a moment in time.

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