3. Which of the following does NOT make sense?

Group of answer choices

All of these make sense

The fair value that we calculate from the discounted cash flow model is very sensitive to interest rate changes

Cash flows further in the future have lower present values

Future cash flows can be hard to estimate

The discounted cash flow method is easy to use but the market price does not necessarily have to gravitate toward the fair value price we calculated

4. The financial statements are all that Buffett needs to decide if he should buy a company

Group of answer choices

False

True