Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A) As the enterprise value represents the entire value of a firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows after interest payments are made.
• B) We can compute a firm's price-earnings ratio by using either trailing earnings or forward earnings with the resulting ratio called the trailing price-earnings or forward price-earnings.
• C) It is common practice to use valuation multiples based on a firm's enterprise value.
• D) Using a valuation multiple based on comparables is best viewed as a "shortcut" to the discounted cash flow method of valuation.

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Definitions:

Oil-Based Lubricants

Lubricants made from oil, which can be used to reduce friction during sexual activity, but may degrade latex products.

Water-Based Lubricants

Lubricating products that use water as a base, often recommended for their compatibility with condoms and ease of cleanup.

Depo-Provera (DMPA)

A contraceptive injection containing the hormone progestin, given every three months to prevent pregnancy.

Ovulation

The release of an egg from the ovary, a key phase in the menstrual cycle crucial for reproduction.