Question: Please answer the following questions :) All else being equal, a company with a large EV/Capital ratio will tend to have a large return on





Please answer the following questions :)





All else being equal, a company with a large EV/Capital ratio will tend to have a large return on capital (ROC). 0 True 0 False The business with a net present value (N PV) of a rm equal to $0 is an example of a fairly valued business. (All else equal.) 0 True False In the context of relative valuation, it makes sense to use the equation PE = 13 + (2 x g) to adjust a company's PE ratio for differences in growth (9). (Assuming statistical significance.) O True O FalseIn the framework of relative valuation, if two companies have the same PIE ratios then both rms will generally have different EWEBITDA ratios. True 0 False Discounting free cash flows to equity (FCFE) at the weighted-average cost of capital (WACC) will tend to overstate the true intrinsic value of equity. O True O False
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