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Level II
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Equity Valuation
Equity Valuation
Medium
When comparing Nippon Steel (Japan, P/E of 8x) to Cascade Steel (US, P/E of 14x), the most important adjustment for cross-border comparability is most likely to account for differences in:
A
Accounting standards and expected growth rates between the two markets
B
The number of shares outstanding and free float percentages
C
Dividend payout ratios, since Japanese firms typically pay higher dividends
D
Currency denomination, which directly determines the appropriate P/E multiple
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Tags
#cross-border-valuation
#p-e-ratio
#accounting-adjustments
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