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:

Polyunsaturated Fats

Fatty acids that contain more than one unsaturated carbon bond, considered healthier fats and found in foods like fish and nuts.

Trans Fat

A type of unhealthy fat formed through the industrial process of adding hydrogen to vegetable oil, which can raise bad cholesterol levels and increase heart disease risk.

Unsaturated Fats

A type of dietary fat, found in foods like avocados, nuts, and olive oil, that is considered healthier than saturated fats.

Saturated Fats

Types of fats commonly found in animal products and some plant oils, known to raise levels of LDL cholesterol in the blood, potentially increasing heart disease risk.