When Using the Multiples Analysis Approach to Valuing a Business

question 17

Multiple Choice

When using the multiples analysis approach to valuing a business, one must be aware

• A) of the presence of a marketability discount that can be sizable.
• B) that identifying one or more comparable companies is not an easy task.
• C) of differences in the capital structures of the companies being compared.
• D) All of the above.

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Definitions:

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Triadic Reciprocal Model

A theory proposed by Albert Bandura that human behavior is determined by the interaction between personal factors, behavior, and the environment.

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