_____ are rules of thumb that are commonly used to estimate firm value in relation to some easily observable characteristic of the business.

Question

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Heuristics are commonly used rules of thumb to estimate firm value. These heuristics are based on easily observable characteristics of the business, such as the price-to-earnings ratio or the price-to-sales ratio. They are not precise methods of valuation, but can provide a quick estimate of a company's worth. Synergies refer to the benefits that arise from combining two businesses, spin-offs involve creating a new company by splitting off a division or subsidiary, and book values refer to the value of assets and liabilities recorded on a company's balance sheet.

_____ Are Rules of Thumb That Are Commonly Used to Estimate