For what company would a valuation metric like EV/Sales be helpful? a. A company with high...

For what company would a valuation metric like EV/Sales be helpful?

	a.	A company with high gross margins
	b.	A company with no earnings
	c.	A company with low gross margins
	d.	A company with no debt

Expert Solution

Option b is correct option. A valuation metric like EV/Sales should be used to value companies with no earnings since cash flows are not there to calculate the value through other methods

jeff jeffy answered 2 years ago

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