Which of the Following Explains the Rationale for Using "Normalized

Multiple Choice

Which of the following explains the rationale for using "normalized" earnings under the excess-earnings valuation approach?

A) Historic asset values are the best reflection of the assets' value in use.
B) The company's future earnings should always be higher than the past earnings.
C) The past often provides useful information about the future; past earnings are a good starting point.
D) Normalized earnings are not used under the excess-earnings valuation approach.