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  3. Study Set
    Financial Accounting for MBAs
  4. Exam
    Exam 13: Using Financial Statements for Valuation
  5. Question
    Which Is the Better Model for Valuation When Earnings Quality
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Which Is the Better Model for Valuation When Earnings Quality

Question 8

Question 8

Short Answer

Which is the better model for valuation when earnings quality is a major concern, DCF or ROPI? Explain.

Correct Answer:

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Both approaches are suitable. When earni...

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