LOS n: Discuss the sources of differences in cross-border valuation comparisons. ffice ffice" />
Q1. Which of the following factors is NOT a source of differences in cross-border valuation comparisons?
A) Cultures.
B) Growth opportunities.
C) Intra-country market indicators.
Correct answer is C)
Intra-country market indicators are not, by definition, cross-border.
Q2. Which of the following price multiples is most severely damaged by international accounting differences?
A) Price to cash flow from operations (P/CFO).
B) ffice:smarttags" />Enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA).
C) Price to free cash flow to equity (P/FCFE).
Correct answer is B)
EV/EBITDA is the most seriously affect because it is most closely tied to accounting conventions
Q3. Which of the following factors is a source of differences in cross-border valuation comparisons?
A) Accounting methods.
B) Intra-country market indicators.
C) Comparative advantage.
Correct answer is A)
Different accounting conventions make cross-border comparisons for valuation purposes challenging.
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发表于 2009-3-9 17:20
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