Which of the Following Is Not a Factor That Makes

Multiple Choice

Which of the following is not a factor that makes valuing a target's stock difficult and imprecise?

A) It's hard for an acquirer to get an accurate forecast of the target's future cash flows.
B) Terminal values vary dramatically in response to small changes in assumptions.
C) The acquirer's management generally doesn't know anything about the target's line of business.
D) Estimating a risk adjusted discount rate for the analysis is inherently imprecise.