What Is NOT a Reason Why Transaction Comps Generally Provide

question 27

Multiple Choice

What is NOT a reason why transaction comps generally provide a higher multiple range than trading comps?

• A)Buyers pay control premiums
• B)Buyers often have the opportunity to realize synergies
• C)Buyers receive the right to control decisions
• D)Transaction comps are more accurate than trading comps

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Definitions:

Middle-Range Theories

Narrow, focused, theoretical frameworks that explain the conditions that produce some specific social behavior.

General Theories

Broad frameworks designed to explain a wide range of phenomena across contexts and time.

Theoretical Perspectives

Theories that make broad assumptions about human nature and offer general explanations of a wide range of diverse behaviors. See also Middle-range theories.

Propositions

Statements or assertions that express opinions, judgments, or concepts which can be analyzed or debated.