Which of the following is a good ballpark floor valuation for a business?
A)Taking the earnings (net profit)of the organization and dividing that figure by a capitalization rate
B)Estimating cash flows five years into the future and adding a salvage value for the firm
C)Locating the price/earnings (P/E)ratio for public companies in the same industry
D)Examining similar companies that have been acquired by looking at the percentage premium being offered in general on all new public acquisitions

Question

Quizplus · Accepted Answer

The Answer of Which of the following is a good ballpark floor valuation for a business?
A)Taking the earnings (net profit)of the organization and dividing that figure by a capitalization rate
B)Estimating cash flows five years into the future and adding a salvage value for the firm
C)Locating the price/earnings (P/E)ratio for public companies in the same industry
D)Examining similar companies that have been acquired by looking at the percentage premium being offered in general on all new public acquisitions

Which of the Following Is a Good Ballpark Floor Valuation