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:

Emotional Expression

The process of conveying one's emotional state through verbal articulations, facial expressions, body language, or other means.

Inability

The lack of physical or mental capability to perform an action or task effectively.

Poor Concentration

A mental state characterized by difficulty in focusing on tasks or maintaining attention span.

Lack of Drive

A condition characterized by a significantly reduced motivation or desire to engage in activities or pursuits.