1. Which of the following statement is true regarding comparable company analysis?

a. You should only use EBITDA in finding the value of a company.

b. You can ask senior managers in collecting financial data.
c. The company's worth is based on what other similar companies are worth.
d. Find a hundred of similar public companies and compare them all to the target
company.

2. The information you need will vary widely by industry when using the comparable
company analysis.
a. true
b. false

3. It is the first step in performing comparable company analysis.

a. Gather financial information
b. Find the right comparable companies
c. Calculate the comparable ratios
d. Set up the comps table

4. Searching for companies that operate in the same industry and that have similar
characteristics is the first step in performing comparable company analysis.
a. true
b. false

5. Comparable company analysis is a relative form of valuation.

a. true
b. false

6. In setting up the comps table, which of the following is the most appropriate
thing to do?
a. List the company names of the public and private companies that you gather.
b. Include immaterial informations in the table.
c. Use current and historical financial records of the companies and disregard the
projected ones.
d. Collect financial information of the companies based on the multiples that you
will be using.

answers
1 c
2 a
3 b
4 a
5 a
6 d