In estimating continuing value,how does assuming that RONIC = WACC as opposed to assuming RONIC ≠ WACC affect the importance of assumptions concerning growth?
A) Assumptions concerning growth do not change in importance.
B) Assumptions concerning growth become unimportant when RONIC = WACC.
C) Assumptions concerning growth become more important when RONIC = WACC.
D) Assumptions concerning growth become less important when RONIC = WACC but are still important.
Correct Answer:
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