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1. Among the following statements, only 3 are correct with respect to corporate valuations. Identify which...

1. Among the following statements, only 3 are correct with respect to corporate valuations. Identify which ones.

a)      There are several potential values for a single company

b)      Valuation combines business and financial analysis, as well as the use of valuation methodologies

c)      The value of a company with stable earnings does not change over time

d)      Valuation is only based on future earnings projections, one does not take into account current or historical performance at all

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Answer #1

Correct one's:

a)      There are several potential values for a single company

b)      Valuation combines business and financial analysis, as well as the use of valuation methodologies

c)      The value of a company with stable earnings does not change over time

why is d incorrect , since valuation considers the growth rate based on current as well previous historical performance.

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