Question #9
Reading: Reading 19 Equity Valuation - Applications and Processes
PDF File: Reading 19 Equity Valuation - Applications and Processes.pdf
Page: 5
Status: Correct
Correct Answer: A
Question
Important considerations for choosing an appropriate approach for valuing a given company are least likely to include:
Answer Choices:
A. Is the model appropriate based on the quality and availability of input data?
B. Is the model consistent with the investor's IPS?
C. Is the model suitable given the purpose of the analysis?
Explanation
Important considerations when choosing a valuation model include:
Does the model fit the characteristics of the company?
Is the model suitable given the purpose of the analysis?
Is the model appropriate based on the quality and availability of input data?