Question: What is the difference between enterprise-based and price-based multiples? Give an example of each and explain why they are defined as belonging to each category.

What is the difference between enterprise-based and price-based multiples? Give an example of each and explain why they are defined as belonging to each category.

2.Why and how the incentive compensation plans can be used to align the interests between managers and the shareholders.
3.Why are the required rate of return demanded by the VC investors so much higher than other investors such as banks and mutual fund investors?

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1 Difference between EnterpriseBased and PriceBased Multiples EnterpriseBased Multiples Enterprisebased multiples are valuation ratios that use enterprise value as the numerator Enterprise value repre... View full answer

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