Computing projected earnings and include acquisitions

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If a company grows primarily through acquisitions, and we are trying to estimate the cash flows to the firm, which of the following estimation choices is likely to yield the best estimate of value?

A. Ignore the growth from acquisitions when computing projected earnings and include acquisitions in your forecasted capital expenditures

B. Count the growth from acquisitions when computing projected earnings and exclude acquisitions in your forecasted capital expenditures

C. Ignore the growth from acquisitions when computing projected earnings and exclude acquisitions in your forecasted capital expenditures

D. Count the growth from acquisitions when computing projected earnings and include acquisitions in your forecasted capital expenditures

E. None of the above

Reference no: EM132826014

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