For Which One of the Following Situations Will the Price-To-Sales

question 11

Multiple Choice

For which one of the following situations will the price-to-sales valuation model work but the dividend and cash flow models will not?

• A) mature firm with minimal growth opportunities
• B) water-powered electric utility company
• C) newly-formed biotechnology company with negative earnings
• D) top-performing firm in a mature industry

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Definitions:

Professional Responsibility

The ethical and moral obligations that professionals have towards their clients, society, and their profession, including maintaining competence and confidentiality.

Consulting

Offering expert advice in a particular area or specialty to improve a client or organization's performance or strategy.

Competent

Possessing the necessary ability, knowledge, or skill to do something successfully.

Tarasoff v. The Regents

Tarasoff v. The Regents of the University of California is a landmark legal case that established the duty of mental health professionals to warn identifiable individuals of threats made by a patient.