True or False A.) An advantage of the discounted cashflow valuation method is that it is less exposed to market moods and perceptions .B.)A disadvantage of the discounted cashflow valuation method is that it requires more inputs and information compared to other valuation techniques. C.)Fundamental analyst uses the discounted cashflow method and the price multiples to value firms.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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True or False

A.) An advantage of the discounted cashflow valuation method is that it is less exposed to market moods and perceptions

.B.)A disadvantage of the discounted cashflow valuation method is that it requires more inputs and information compared to other valuation techniques.

C.)Fundamental analyst uses the discounted cashflow method and the price multiples to value firms.

D.)  Market timers focus on using overall market trends as a basis for predicting when to buy or sell investments. However, they can use valuation techniques on specific financial instruments to support their decision. 

E.) An entity bought a warehouse in an auction. It paid P400,000 for the unit. The unit included several high-value assets. The entity would need a valuation for purchase price allocation.

F.) A old couple decided to give away some of their assets to their children throughout their senior years. This couple may need to use valuation for estate distribution purposes during their living years.

 

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