Which of the following statements is false? a) as the enterprise value represents the entire value of a firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows afterinterest payments are made. b) we can compute a firmʹs price-earnings ratio by using either trailing earnings or forwardearnings with the resulting ratio called the trailing price-earnings or forwardprice-earnings. c) it is common practice to use valuation multiples based on a firmʹs enterprise value. d) using a valuation multiple based on comparables is best viewed as a ʺshortcutʺ to thediscounted cash flow method of valuation.

The false statement is letter "A": As the enterprise value represents the entire value of a firm before the firm pays its debt, to form an appropriate multiple, we divide it by a measure of earnings or cash flows after interest payments are made.

Explanation:

Indeed, the value of a firm represents its value before deducting what the company owes. Though, in order to calculate the correct multiple, specialists tend to divide the debt by a measure of income or cash flows before interest payments go through.

the answer is true.  i do believe this is the answer because of the amount of wrecks people get into each year.  if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.