When Determining the Value of an Existing Business for Sale

When determining the value of an existing business for sale, the market capitalization or multiple method uses __________.

A) the current market value of the company's stock
B) the weighted average net income of the business multiplied by a desired rate of return on the investment
C) the current market value of the company's assets less its outstanding liabilities
D) the weighted average net income of the business divided by the maximum acceptable risk factor
E) None of the answers are correct.