The CFO of Alphabet is a little nervous about the acquisition and the calculations assumptions. What are some ways that she might build in a “margin of safety?”
(1) Increase the discount rate
(2) Decrease the discount rate
(3) Increase the cash flow assumptions
(4) Decrease the cash flow assumptions
Choose one answer.
a. 1 and 3
b. 1 and 4
c. 2 and 3
d. 2 and 4