Your aunt thinks she is an astute investor and offers you some advice, Ignore companies that have

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Your aunt thinks she is an astute investor and offers you some advice, "Ignore companies that have negative earnings.

It is impossible to value these companies." Do you agree? How could you derive a positive valuation from a company with negative earnings? What valuation method/s are applicable? What assumptions would you need to make?

Related Book For answer-question

Principles of Auditing and Other Assurance Services

ISBN: 978-0078025617

19th edition

Authors: Ray Whittington, Kurt Pany

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Posted Date: Apr 07, 2023 01:10 AM

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Your aunt thinks she is an astute investor and offers you some advice, Ignore companies that have

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Expert Answer:

Solution While negative earnings might indicate that a company is currently not profitable it does n... View the full answer

Principles of Auditing and Other Assurance Services

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