Which of the following is most likely considered a weakness of present value models? A. Present value

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Which of the following is most likely considered a weakness of present value models?

A. Present value models cannot be used for companies that do not pay dividends.

B. Small changes in model assumptions and inputs can result in large changes in the computed intrinsic value of the security.

C. The value of the security depends on the investor’s holding period; thus, comparing valuations of different companies for different investors is difficult.

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Investments Principles Of Portfolio And Equity Analysis

ISBN: 9780470915806

1st Edition

Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard

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Question Posted: Mar 22, 2024 01:27 AM

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Which of the following is most likely considered a weakness of present value models? A. Present value

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B is correct Very small changes in inputs such as required rate of ...View the full answer

Investments Principles Of Portfolio And Equity Analysis

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