Which of the following is not a necessary assumption to make in order to use comparables to value a firm?

Question

Quizplus · Accepted Answer

The assumption of perfect and efficient markets is not necessary to use comparables to value a firm. While it is helpful to have efficient markets, comparables can still be used in markets that are not perfectly efficient. The other three assumptions are necessary to effectively use comparables to value a firm. The assumption that markets are perfect and efficient is not necessary for using comparables to value a firm. However, the assumptions that a value-relevant measure can be identified, the market values comparable projects similarly, and that close comparables can be identified are necessary.

Which of the Following Is Not a Necessary Assumption to Make