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Question
Limitations in applying the comparable companies method of valuation include which of the following?
a. Finding truly comparable companies is difficult
b. The use of market-based methods can result in significant under- or overvaluation during periods of declining or rising stock markets
c. Market-based methods can be manipulated easily, because the methods do not require a clear statement of assumptions with respect to risk, growth, or the timing or magnitude of future earnings and cash flows.
a. A, B, & C
b. A & B only
Answer
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