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When valuing companies, we pay attention to the market price. Why? O A . The information we extract from markets can improve our valuations. We
When valuing companies, we pay attention to the market price. Why?
O A The information we extract from markets can improve our valuations. We can extract
information on implied growth rates, risk and cash flows.
O B Good investments come from market prices moving to an assets intrinsic value. Therefore, we need to understand the drivers of the market price and howwhether it will adjust to our estimated value over time.
O C Markets are consistently wrong, we can outguess them consistently.
OD A and B
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