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Business, 02.08.2019 17:30 hqlego3189

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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Which of the following statements is false?
a. as the enterprise value represents the entire...
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