In Valuation of Common Stock,the Price/earnings Multiple Approach Usually Produces

question 17

True/False

In valuation of common stock,the price/earnings multiple approach usually produces higher valuations than the book or liquidation values since it considers expected earnings.

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Definitions:

Indorsement

An act of signing a document, often found on the back of a check, to transfer rights or to authenticate.

Negotiating

The process of discussing and arriving at a mutual agreement between parties with differing needs or viewpoints.

Blank Indorsement

An indorsement that specifies no particular indorsee and can consist of a mere signature. An order instrument that is indorsed in blank becomes a bearer instrument.

Special Indorsement

An indorsement on an instrument that indicates the specific person to whom the indorser intends to make the instrument payable—that is, it names the indorsee.