Question #11
Reading: Reading 18 Corporate Restructuring
PDF File: Reading 18 Corporate Restructuring.pdf
Page: 5
Status: Unattempted
Question
Which of the following is least likely an advantage of comparable company analysis?
Answer Choices:
A. The approach does not assume that the market’s valuation of the comparable companies is fair
B. Estimates of value are derived directly from the market rather than assumptions and estimates about the future
C. Data for comparable companies is easy to access
Explanation
One disadvantage of comparable company analysis is that it implicitly assumes that the
market's valuation of the comparable companies is fair.