Which of the following statement is correct? All the answers are incorrect. Liquidation value is a best-case valuation assessment because a company's net income and revenues should be worth at least the amount generated per share at liquidation. The discount rate used in the DCF model is the treasury-bill rate, which is a function of the riskless return of the investment. When the YTM rises, the market price of a bond falls. A P/E ratio of 20 means that investors are willing to pay $1 for $20 of a stock's earnings.