When performing comparable analysis the ideal comparable firm will have each of the following characteristics EXCEPT:
A)it is in a similar industry.
B)it is of a similar size.
C)it has similar risk as measured by beta.
D)these are all desirable comparables.

Question

Quizplus · Accepted Answer

All of the characteristics mentioned in A, B, and C are desirable when selecting comparables for analysis. Therefore, D is the correct answer as it states that at least one of the characteristics is not desirable, which is not the case.

When Performing Comparable Analysis the Ideal Comparable Firm Will Have