When using the multiples analysis approach to valuing a business, one must be aware

Question

Quizplus · Accepted Answer

All three options are important to consider when using the multiples analysis approach. A marketability discount can be significant and must be factored in, finding comparable companies can be challenging, and differences in capital structures can affect the values obtained through the multiples analysis. Thus, option D is the best answer.

When Using the Multiples Analysis Approach to Valuing a Business