1. When using relative valuation (RV), if company A is being compared to companies B through G, the ratios of company A should be _____________ the calculation of median and standard deviation of the ratios.
A. excluded from
B. included in
C. multiplied by .5 in
D. multiplied by 1.5 in
2. The relative valuation (RV) approach assumes that the other firms used in the analysis are ______________ the firm being valued.
A. comparable to
B. unlike
C. more risky than
D. less risky than