Which of the following are true?
Using the price to earnings ratio to value a firm's stock in
comparison to the stock of another firm is appropriate if the two
firms have similar required rates of return, even if the firms are
expected to grow at very different rates in the future.
Assuming the discount rates for two stocks are the same, the
price to earnings ratio should be higher for the stock with higher
expected growth than for the stock with lower expected growth.
Free cash-flow valuation is a technique that is used to value
only the debt of a firm.
The enterprise value to EBITDA ratio is designed to measure the
amount of taxes a firm is expected to pay in the next year.
Which of the following are true? Using the price to earnings ratio to value a firm's stock in comparison to the stock of
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am