Which of the following statements regarding fundamental and relative valuation techniques is true? A) Both techniques require an appropriate estimate of the required rate of return and the growth rate. B) Both techniques require an estimate of future cash flows and a discount rate. C) Both techniques require an estimate of future cash flows and a growth rate. D) Both techniques require an estimate of future cash flows, the required rate of return and a growth estimate. E) All of the above are true.

Question

Quizplus · Accepted Answer

Fundamental valuation requires estimates of the required rate of return and growth rate, while relative valuation does not necessarily require these estimates.

Which of the Following Statements Regarding Fundamental and Relative Valuation