Identify the incorrect statement concerning company valuation. ...

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Finance

  1. Identify the incorrect statement concerning company valuation.

    A.

    From a financial perspective, the maximum price that should be paid is the price at which the added value exceeds the acquisition transaction costs

    B.

    The bid price for a target company usually includes a control premium

    C.

    Valuation techniques do not offer an exact value of the target company

    D.

    Valuations on a forward-looking basis are preferred to historical valuations

    E.

    The earnings yield valuation method has similar weaknesses to the price/earnings ratio valuation method

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