Which of the Following Statements Is False

question 14

Multiple Choice

Which of the following statements is false?

• A) Because capital expenditures can vary substantially from period to period, most practitioners rely on enterprise value to free cash flow multiples.
• B) Common multiples to consider are enterprise value to EBIT, EBITDA, and free cash flow.
• C) If two stocks have the same payout and EPS growth rates as well as equivalent risk, then they should have the same P/E ratio.
• D) Looking at enterprise value as a multiple of sales can be useful if it is reasonable to assume that the firms will maintain similar margins in the future.

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Definitions:

Mild Punishers

Interventions or consequences designed to decrease a behavior's occurrence, which are not severe or harsh.

Flooding

A behavioral therapy technique used to treat phobias and anxiety disorders by exposing the patient to their fear at its most intense level, without any danger, to eliminate the fear response.

Extinction

The process through which a conditioned response decreases or disappears over time as it is no longer reinforced or paired with an unconditioned stimulus.

Avoidance Behavior

Actions taken to prevent or avoid the occurrence of an unpleasant stimulus or scenario.