________ Is a Guide to a Firm's Value If It

question 135

Multiple Choice

________ is a guide to a firm's value if it is assumed that investors value the earnings of a given firm in the same way they do the average firm in the industry.

• A) Liquidation value
• B) Book value
• C) The P/E multiple
• D) The present value of the dividends

---

Definitions:

Damages

Monetary compensation ordered by a court to be paid to an individual harmed by another's action or inaction.

Joint Venture

A business arrangement in which two or more parties agree to combine their resources for accomplishing a specific task or project.

Partnership

A business organization in which two or more individuals manage and operate the business in accordance with the terms and objectives set out in a partnership deed.

Differences

Variations or disparities between things or individuals, noting contrasts in characteristics or qualities.