Which of the following would be a quantitative way to ascertain the fairness of an LBO's asking price
A) Price-earnings ratio
B) Book value
C) Present value of future earnings
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

All the options provided are quantitative measures that can be used to evaluate the fairness of an LBO's asking price. The price-earnings ratio gives insight into the market's valuation of the company relative to its earnings, the book value provides a snapshot of the company's net asset value, and the present value of future earnings helps in understanding the value of the company's future profitability.

Which of the Following Would Be a Quantitative Way to Ascertain