题目内容

Which one of the following is not a commonly used method of valuing target firms?

A. Discounted cash flow
B. Comparable companies method
C. Recent transactions method
D. Asset oriented method
E. Share exchange ratio method

查看答案
更多问题

Which of the following represent options available to managers in making investment decisions?

A. Delay initial investment
B. Accelerate cumulative investment
C. Abandon the investment at a later date
D. A & B only
E. A, B, & C

Limitations in applying the comparable companies’ method of valuation include which of the following?

A. Finding truly comparable companies is difficult
B. The use of market-based methods can result in significant under- or overvaluation during periods of declining or rising stock markets
C. Market-based methods can be manipulated easily, because the methods do not require a clear statement of assumptions with respect to risk, growth, or the timing or magnitude of future earnings and cash flows.
D. A, B, & C
E. A & B only

In determining the purchase price for an acquisition target, which one of the following valuation methods does not require the addition of a purchase price premium?

A. Discounted cash flow method
B. Comparable companies’ method
Comparable industries’ method
D. Recent transactions’ method
E. A & B only

Which one of the following factors is not considered calculating a firm’s PEG ratio?

A. Projected growth rate of the value indicator (e.g., earnings)
B. Ratio of market price to value indicator (e.g., P/E)
C. Share exchange ratio
D. Historical growth rate of the value indicator
E. None of the above

答案查题题库