LOS n: Discuss the sources of differences in cross-border valuation comparisons.

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.

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

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

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.

LOS n: Discuss the sources of differences in cross-border valuation comparisons. fficeffice" />

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.

答案-cba

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thanks