Which of the Following Represent Advantages of the Comparable Companies

question 24

Multiple Choice

Which of the following represent advantages of the comparable companies' valuation method?

• A) Uses the most accurate market-based valuation at a point in time
• B) Valuations need to be adjusted to reflect control premiums
• C) Adjusts for risk of future cash flows
• D) Adjusts for the timing of future cash flows
• E) A & B only

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Definitions:

Imprinting

A form of rapid learning that occurs during a brief receptive period, typically soon after birth or hatching, which establishes a long-lasting behavioral response to a specific individual or object.

Reactive Nervous System

Refers to the part of the nervous system that responds spontaneously to stimuli, often indicative of an instinctual or immediate reaction.

Anxious

Experiencing worry, unease, or nervousness, typically about an imminent event or something with an uncertain outcome.

Withdrawn

A state or behavior characterized by a reluctance to engage with others or participate in social activities, often due to emotional or psychological reasons.