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The valuation method isn't going to take under consideration the growth inside the enterprise operation, though analyzing its benefit. Since the method fails to look at the advancement aspect of the enterprise; the value determined by this method could be unreliable.

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Essential respond to: Articulate your choice for the most suitable solution and substantiate it with supporting evidence. You may also incorporate insights from lectures, course discussions, applicable texts, and personal viewpoints to fortify your solution.

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The multiples applied Within this technique is likely to be misinterpreted or incomparable because of discrepancies in accounting guidelines of various businesses.

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