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Which of the Following Is a Criticism of the Traditional

Question 9

Multiple Choice

Which of the following is a criticism of the traditional discounted cash flow method?


A) It is biased against short-term projects.
B) It tends to ignore the direct cash flows.
C) It tends to focus on what can easily be quantified.
D) It cannot be applied to value securities which have an expected rate of return greater than their dividend growth rate.

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