Which of the Following Statements Is FALSE

question 13

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:

Typedef

A keyword in C and C++ programming languages used to create an alias for existing data types.

Aliases

Alternative names or identifiers that refer to the same entity in a program or system.

Structures

Custom data types in C programming that allow different data types to be stored together.

Typedef Double REAL

A statement in C programming that creates an alias named REAL for the double data type, used for representing floating-point numbers.