Pv of future cash flows and multiples based accounting

Reference no: EM1328944

Can any of you OTAs help me answer this question with a short answer please?

a- In your finance course work you learned that value is the present value of expected net future cash flows. What is the relation between this approach and the use of multiples based on accounting information?

b- How are valuations based on financial statement data affected by companies' financial reporting choices and earnings management?

Reference no: EM1328944

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