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CORPORATE VALUATION ESTIMATING CORPORATE VALUE
ANSWER KEY
7. Match each of the valuation methodologies in Column A with its definition in Column
B.
Column A
d Dividend value
c Market / book ratio
a Price / earnings ratio
b Liquidation value
Column B
a) Amount investors are paying for each
dollar of income generated by the firm
b) Amount left for shareholders after assets
are sold and creditors are paid
c) Amount investors are paying relative to
value of the company according to
accounting methods
d) Value of equity based on value of
perpetuity