The major methods typically used to value merger candidates include all the following except
A)comparative price-earnings ratio method
B)adjusted book value method
C)discounted cash flow method
D)bottom line comparison method

Question

Quizplus · Accepted Answer

The other three options (comparative price-earnings ratio method, adjusted book value method, and discounted cash flow method) are commonly used valuation methods in mergers and acquisitions. The bottom line comparison method is not a commonly used method for valuing merger candidates.

The Major Methods Typically Used to Value Merger Candidates Include