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Question 10. Which of the following statements is wrong? A. Growth stocks usually have high P/E ratios. B. Historically, on average growth stocks outperform value

Question 10. Which of the following statements is wrong?

A. Growth stocks usually have high P/E ratios.

B. Historically, on average growth stocks outperform value stocks.

C. In the dividend discount model we take the present value of future dividends.

D. In the Free Cash Flow (FCF) model, we discount the expected FCFs using the cost of capital.

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