What Is the Major Difficulty with Using Discounted Cash Flow

question 36

Multiple Choice

What is the major difficulty with using discounted cash flow approaches to estimate a stock’s intrinsic value?

• A) Prices in the stock market move from moment to moment.
• B) Small changes to the assumptions of k or g result in major changes in the estimated value.
• C) It is extremely unlikely that a stream of cash flows will continue to grow at the same rate.
• D) The relative valuation techniques are more accurate approaches.

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A component of the autonomic nervous system that activates the body's fight or flight response in preparation for action.

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A type of white blood cell that plays a critical role in the immune system by producing antibodies to fight infections.

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An infection caused by bacteria entering the body, multiplying, and causing a reaction in the body.

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The body's defense mechanism against pathogens, including bacteria, viruses, and other harmful entities, comprising organs, tissues, and cells.