All of the Following Are Weaknesses of a Precedent Transactions

question 9

Multiple Choice

All of the following are weaknesses of a precedent transactions analysis EXCEPT:

• A)Multiples may be skewed, depending on the economic environment
• B)Precedent transactions by definition have occurred in the past, and may not be reflective of the current environment
• C)A precedent transactions analysis makes too many assumptions about future performance
• D)Information may be insufficient to determine transaction multiples for many comparable acquisitions.

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Definitions:

Audiometer

A device to measure the degree of hearing ability.

Rinne Test

A hearing test that compares air conduction to bone conduction of sound, used to evaluate loss of hearing in one or both ears.

Weber Test

A tuning fork test used in audiology to assess hearing loss by determining whether sound is heard better in one ear than the other.

Vital Capacity

The total volume of air exchanged from forced inspiration and forced expiration.