1.Which of the following factors is a source of differences in cross-border valuation comparisons?

A)   Intra-country market indicators.

B)   Comparative advantage.

C)   Gross domestic product (GDP) deflator.

D)   Accounting methods.

2.Which of the following price multiples is most severely damaged by international accounting differences?

A)   Price to cash flow from operations (P/CFO).

B)   Enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA).

C)   Price to free cash flow to equity (P/FCFE).

D)   Dividend yield (D/P).

3.Which of the following factors is NOT a source of differences in cross-border valuation comparisons?

A)   Accounting methods.

B)   Cultures.

C)   Growth opportunities.

D)   Intra-country market indicators.

答案和详解如下：

1.Which of the following factors is a source of differences in cross-border valuation comparisons?

A)   Intra-country market indicators.

B)   Comparative advantage.

C)   Gross domestic product (GDP) deflator.

D)   Accounting methods.

The correct answer was D)

Different accounting conventions make cross-border comparisons for valuation purposes challenging.

2.Which of the following price multiples is most severely damaged by international accounting differences?

A)   Price to cash flow from operations (P/CFO).

B)   Enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA).

C)   Price to free cash flow to equity (P/FCFE).

D)   Dividend yield (D/P).

The correct answer was B)

EV/EBITDA is the most seriously affect because it is most closely tied to accounting conventions.

3.Which of the following factors is NOT a source of differences in cross-border valuation comparisons?

A)   Accounting methods.

B)   Cultures.

C)   Growth opportunities.

D)   Intra-country market indicators.

The correct answer was D)

Intra-country market indicators are not, by definition, cross-border.