Which of the following is not a reason the PE ratio method may result in an inaccurate valuation for a firm?
A) potential errors in the forecast of the firm's beta
B) potential errors in the forecast of the firm's future earnings
C) potential errors in the choice of the industry composite used to derive the PE ratio
D) All of the above are reasons the PE ratio method may result in an inaccurate valuation for a firm.
Correct Answer:
Verified
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