Question #22
Reading: Reading 19 Equity Valuation - Applications and Processes
PDF File: Reading 19 Equity Valuation - Applications and Processes.pdf
Page: 9
Status: Correct
Correct Answer: A
Question
Which of the following least accurately represents one of the primary steps of the equity valuation process described by Pinto, Henry, Robinson, and Stowe?
Answer Choices:
A. Selecting a valuation model
B. Decision making
C. Assessing corporate governance
Explanation
The valuation process described by Pinto, Henry, Robinson, and Stowe consists of 5 steps:
1. Understanding the business.
2. Forecasting company performance.
3. Selecting a valuation model.
4. Complete a valuation.
5. Decision making.
Corporate governance is important, but is not one of the primary steps.