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Explain whether you agree or disagree with the following statement: "Unlike a dividend discount model, relative valuation seeks to explain the factors that determine the observed value of a share of common stock." To what extent is the procedure similar for valuation based on discounting cash flows and valuation by multiples? SSS In seeking to establish comparable companies in relative valuation analysis, what is the problem with specifying too stringent criteria for companies to be included in the comparable group?

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