Which of the Following Are Correct Concerning the Approach the Analyst

question 4

Multiple Choice

Which of the following are correct concerning the approach the analyst should take when evaluating a high-growth company?
I.Think in terms of probabilities.
II.Begin the process by starting from the future rather than the present.
III.Understand the economics of the business model compared with peers.
IV.Remember that the DCF approach is an essential tool for understanding the value of high-growth companies.

• A)I and II only.
• B)I,II,and III only.
• C)I and IV only.
• D)I,II,III,and IV.

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