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:

Firewall

A security system designed to prevent unauthorized access to or from a private network, often used to protect computer networks from internet threats.

Psychological Aggression

A form of abusive behavior that involves the infliction of psychological pain or distress, often through verbal abuse or manipulation.

Connectivity

The state or quality of being connected or interconnected, especially referring to computers, networks, or telecommunications.

Family Affairs

Matters and activities related to the functioning and well-being of a family unit.