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Which of the following statements are correct regarding the DCF method versus the comparables method of valuing stocks? [ Choose the one best answer .
Which of the following statements are correct regarding the DCF method versus the comparables method of valuing stocks?
Choose the one best answer
A
The DCF method requires you to make very specific, explicit assumptions and can be much harderie require more calculation effort relative to the comparables method.
B
The DCF method requires judgment to use, but so does the comparables method. Since both involve forecasting the future, there is some subjectivity involved so that its not a purely objectivescience
C
The DCF method allows us to incorporate specific information and expectations about the future of a company, and thus has the potential to be more accurate than the comparables method.
D
All of the above are correct regarding the DCF method versus the comparables method of valuing stocks.
E
None of the above are correct regarding the DCF method versus the comparables method of valuing stocks.
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