During a merger and acquisition transaction, the ability to find and use good comparable data for a valuation is relatively ____________. a) easy because each successful company within an industry uses the same ratios b) easy because public stock price fluctuation is not sufficient or erratic enough to make a difference c) difficult because book value is adjusted in small companies as FIFO is the method of choice and in public companies’ book value is static due to LIFO d) difficult because size differential, management depth, product diversity and access to lines of credit seldom match the company being valued

During a merger and acquisition transaction, the ability to find and use good
comparable data for a valuation is relatively ____________.
a) easy because each successful company within an industry uses the same ratios
b) easy because public stock price fluctuation is not sufficient or erratic enough to make a
difference
c) difficult because book value is adjusted in small companies as FIFO is the method of
choice and in public companies’ book value is static due to LIFO
d) difficult because size differential, management depth, product diversity and access to
lines of credit seldom match the company being valued
by

1 Answer

Answer :

d) difficult because size differential, management depth, product diversity and access to
lines of credit seldom match the company being valued
by

Related questions

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Last Answer : a) using credit default spread based on the credit rating of the subsidiary

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Calculate the value of closing stock from the following according to FIFO method: 1st January, 2014: Opening balance: 50 units @ Rs. 4 Receipts: 5th January, 2014: 100 units @ Rs. 5 12th January, 2014: 200 units @ Rs. 4.50 Issues: 2nd January, 2014: 30 units 18th January, 2014: 150 units (a) Rs. 765 (b) Rs. 805 (c) Rs. 786 (d) Rs. 700

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