Business

Kona

14 February, 15:14

Which of the following is most likely considered a weakness of present value models?

a. Present value models cannot be used for companies that do not pay dividends

b. Small changes in model assumptions and inputs can result in large changes in the computed intrinsic value of the security

c. The value of the security depends on the investor's holding period; thus comparing valuations of different companies for different investors is difficult

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