True or False

1) Absolute valuation involves the discounting of future cash flows

2) Future profits in the long term are worth less than future profits in the short term

3) Good financial models balance simplicity with insight

4) Dividends payments may vary, while bond payments usually do not.

5) Relative valuation is the quick and easy comparison of one valuation to another.

6) The risk of relative valuation is being led astray by unrealistic reference points.

7) Earnings and multiples are used to estimate fair share prices.

8) Fast growing companies warrant high multiples and vice versa.

9) The state of the economy is a key driver of relative valuation.