Question: Identify the incorrect statement concerning company valuation. A. From a financial perspective, the maximum price that should be paid is the price at which the
Identify the incorrect statement concerning company valuation.
| A. | From a financial perspective, the maximum price that should be paid is the price at which the added value exceeds the acquisition transaction costs | |
| B. | The bid price for a target company usually includes a control premium | |
| C. | Valuation techniques do not offer an exact value of the target company | |
| D. | Valuations on a forward-looking basis are preferred to historical valuations | |
| E. | The earnings yield valuation method has similar weaknesses to the price/earnings ratio valuation method |
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