Security Analysis HW question #4

Two Part, Thanks!

Problem 4: The Dangers of DCF Analysis (15 points) a) Discuss the dangers of discounted cash flow (DCF) analysis, List the shortcomings and provide a brief explanation. Draw from class discussion, ppt lecture notes, and chapters 5 and 22 in Montier's Value Inpesting as presented in class. b) Given the shortcomings of DCF analysis in practice, what are some of the approaches that value investors suggest in order to value securities? Draw from class discussion, ppt lecture notes, and chapters 5 and 22 in Montier's Value Imesting as presented in class