1. Does the application of the comparable companies valuation method require the addition of an acquisition premium? Why or why not?

2. Which is generally considered more accurate: the comparable companies or recent transactions method? Explain your answer.

3. What key assumptions are implicit in the comparable companies valuation method? The recent comparable transactions method?

4. Explain the primary differences between the income (discounted cash flow), market-based, and asset-oriented valuation methods?

5. Under what circumstances might it be more appropriate to use relative-valuation methods rather than the DCF approach? Be specific.