Question: Q3. State true or false, and briefly explain your answer. A. Once a firm reaches steady state, the profit margins grow at the rate g.

Q3. State true or false, and briefly explain your answer. A. Once a firm reaches steady state, the profit margins grow at the rate g.

B. The Price to EBITDA ratio should not be used for relative valuation.

C. It is easier to value firms using FCFF as it does not require information about leverage.

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