Which best describes the build-up method for setting the appropriate discount rate in a DCF valuation?

A. Review the financial details of at least three construction companies.

B. Begin with the risk-free rate, and add premia for size, industry and equity risk.

C. Begin with the risk-free rate, and add premia for size, industry and CBOE-listed option risk.

D. Begin with the risk-free rate, and add premia for size, industry and environmental sustainability risk.