Which of the following statements is FALSE? Group of answer choices It is...
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Finance
Which of the following statements is FALSE?
Group of answer choices
It is common practice to use valuation multiples based on a firm's enterprise value.
You should be willing to pay proportionally more for a stock with lower current earnings.
In the method of comparables, we estimate the value of a firm based on the value of other, comparable firms or investments that we expect will generate very similar cash flows in the future.
We can estimate the value of a firm's shares by multiplying its current earnings per share by the average price-earnings ratio of comparable firms.
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