Question: True or false - The Market Comparable analysis is usually conducted with actual financial statements and other performance variables, however, this same analysis is often
True or false
- The Market Comparable analysis is usually conducted with actual financial statements and other performance variables, however, this same analysis is often times used with forecasted measures as well.
- The most important factor in a quality forecast is that the forecast reflect observed historical relationships.
- The Perpetuity Growth Method is used to assess a firms continuing value by forecasting the post-planning periods Equity Free Cash Flow and dividing that value by the weighted average cost of capital minus the growth rate.
- The value of operations should be adjusted by mid-year discounting because present value calculations assume that all cash flows occur at the beginning of the year.
-The Economic Value Added (EVA) model is best used for companies that use International Accounting Standards.
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