A recommended approach for determining a firm's worth is to base the analysis on the selling price of a similar company.

Question

Quizplus · Accepted Answer

While looking at the selling price of a similar company can be one factor in determining a firm's worth, it should not be the sole approach. Other methods such as discounted cash flow analysis, market comparables, and asset valuation should also be considered for a comprehensive assessment.

A Recommended Approach for Determining a Firm's Worth Is to Base