Question: Am I right with my response here - need some guidance/coaching: Comparable Company Analysis (CCA) and Comparable Transaction Analysis (CTA) are useful components of the
Am I right with my response here - need some guidance/coaching:
Comparable Company Analysis (CCA) and Comparable Transaction Analysis (CTA) are useful components of the science and art of M&A valuation and triangulation efforts. Please answer the following True-False answers, circling T or F for your answers below:
1. All else equal, CTA will generally lead to lower valuations than CCA. True
2. To account for differences in leverage across comparable companies, False
first construct an estimated enterprise value and then subtract debt to arrive at an equity value. 3. CCA provides an estimate of synergy value that is lacking in CTA. False
4. Adjustments to a target's beta will be needed in valuing synergies. True
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