Which of the Following Is NOT an Advantage of the Valuation

question 4

Multiple Choice

Which of the following is NOT an advantage of the valuation multiple method as compared to the discounted cash flow method?

• A) calculations based upon widely available information
• B) based upon actual stock prices of real firms
• C) does not rely on estimates of future cash flows
• D) takes into account important differences between different firms

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Definitions:

High Bandwidth

The ability of a communication system to transmit a large amount of data over a connection in a given amount of time, often associated with high-speed internet access.

Twisted-pair

A type of cabling that consists of two independently insulated wires twisted around each other to reduce electromagnetic interference.

Copper

A ductile, malleable metal with high thermal and electrical conductivity, widely used in electrical wiring and electronics.

Twisted-pair

A type of cabling that consists of pairs of wires twisted together to reduce electromagnetic interference.