Which of the following statements about using the DCF analysis for stock valuation are correct?

I. It requires adding up current and future dividends.

II. It requires adding up the present values of all expected future dividends.

III. It requires making reasonable assumptions about the growth pattern of future free cash flows and dividend payout.

IV. Using the DCF analysis for stock value can make more accurate estimation than for bond valuation. Select one:

a. I, II, III, IV

b. III and IV

c. II and III

d. II, III, IV

e. I, II