What is the argument in favour of using sector-specific multiples? When do sector-specific...

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Accounting

  1. What is the argument in favour of using sector-specific multiples?

  2. When do sector-specific multiples work best? (20 marks)

  3. Why do multiples generally have skewed distributions? (10 marks)

  4. What are the implications for analysts who might use industry averages to compare

    firms? (20 marks)

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