Valuation Process: Factors, Steps, and Analysis

Three-Step Valuation Process

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Question

What three factors are examined in the three-step valuation process?

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Explanations

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A. B. C. D.

C

Economic influences such as government spending and tax; Industry influences such as how industries respond to the business cycle or economic changes; and

Company analysis using cash flow values and financial ratios - are examined in the three-step valuation process. Remember: the factors are in increasing in scope.