18. Which of the following statements about the DCF and market multiple approaches to business valuation is most correct?

A) The market multiple method is theoretically superior.

B) The market multiple method uses either the cost of equity or the corporate cost of capital as the discount rate.

C) Both methods have their own set of advantages and disadvantages.

D)The market multiple method requires more numerical inputs.

E) The DCF method requires that cash flows be forecasted on a monthly basis.

5. Regarding capital budgeting, a difference between Target Stores Company and The Boeing Company is

A) Target does not have to have to include tax effects, while Boeing must include tax effects from depreciation and salvage values.

B) Targets new projects do not have initial cash outflows, while Boeings new projects do.

C) None of the other statements are true.

D) Target can generally use its company corporate cost of capital, CCC, to evaluate all its new growth projects, while Boeing, given its different divisions, cannot.