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:

Asch's

Relating to Solomon Asch's social psychology experiments, primarily known for his research on conformity and group influence.

Cultural Assimilator

A learning tool designed to help individuals understand and adapt to cultural differences through simulated cross-cultural situations.

Example And Explanation

Illustrating a concept or idea through specific instances, followed by a clarification or interpretation to foster understanding.

Academic Psychologists

Individuals who engage in the scientific study of mind and behavior through research and teaching at academic institutions.