Which of the Following Statements Is FALSE

question 54

Multiple Choice

Which of the following statements is FALSE?

• A)Even two firms in the same industry selling the same types of products,while similar in many respects,are likely to be of different size or scale.
• B)In the method of comparables,we estimate the value of the firm based on the value of other,comparable firms or investments that we expect will generate very similar cash flows in the future.
• C)Consider the case of a new firm that is identical to an existing publicly traded company.If these firms will generate identical cash flows,the Law of One Price implies that we can use the value of the existing company to determine the value of the new firm.
• D)A valuation multiple is a ratio of some measure of the firm's scale to the value of the firm.

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Definitions:

Everyday Tasks

Routine activities that individuals perform as part of their daily living, such as cleaning, cooking, and personal care.

Breastfeeding

The act of a mother feeding her infant with milk directly from her breasts, providing nutritional and immunological benefits to the child.

Pediatricians

Medical doctors specializing in the care and treatment of infants, children, and adolescents, focusing on physical, behavioral, and mental health issues.

Bottle-feeding

The method of feeding babies with milk or formula from a bottle, as opposed to breastfeeding.