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The value based on employing this method might not be responsible as this technique makes use of the company’s monetary information i.e. Earnings in advance of interest tax depreciation and Amortization (EBITDA), which could be manipulated because of the Group for showing a beneficial functionality of its company.
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Moreover, general public firms are controlled by the Securities Trade Act of 1934 with regard to the periodic economic reporting, which might be challenging for more recent community corporations to observe. They must also fulfill other principles and polices that happen to be monitored with the Securities and Trade Commission (SEC).
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