Question: Why might the terms book value and liquidation value, used to determine the value of a fi rm, be char-acterized as viewing the fi rm

Why might the terms book value and liquidation value, used to determine the value of a fi rm, be char-acterized as viewing the fi rm as dead rather than alive? Explain why those views are inconsistent with the discounted cash flow valuation models.

Why is it dangerous to conclude that a fi rm with a high P/E ratio will probably grow faster than a firm with a lower P/E ratio?

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