In Theory,all Three Valuation Models,when Correctly Implemented with Internally Consistent

question 51

Multiple Choice

In theory,all three valuation models,when correctly implemented with internally consistent assumptions,will produce the same estimates of value.However,in practice,which of the following errors can result in different value estimates?

• A) Incomplete or inconsistent earnings and cash flow forecasts
• B) Inconsistent estimates of weighted average costs of capital
• C) Incorrect continuing value computations
• D) All of these errors result in different value estimates.