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What is considered a conservative Free Cash Flow (FCF) growth rate for established companies in DCF analysis?

Around 5%

Around 10%

Around 20%

Around 30%

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What is the recommended approach to mitigate risks associated with the sensitivity of DCF analysis to the terminal growth rate?

Use a high terminal growth rate

Use a negative terminal growth rate

Keep the terminal growth rate as low as possible

Ignore the terminal growth rate

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According to the concept of 'Margin of Safety', when should an investor buy stocks?

When the stock price is at its peak

When the stock price is higher than its intrinsic value

When the stock price is at a discount to its intrinsic value

When the stock price is stable

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What is the primary factor that should determine an investor's decision to sell a stock, according to the text?

A significant increase in the stock price

A decline in the overall market

A change in personal financial circumstances

A disruption in the company's investible grade attributes

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What is the general consensus among renowned investors regarding the ideal number of stocks in a portfolio?

Owning as many stocks as possible for maximum diversification

Owning a small number of stocks to allow for concentrated bets

Owning only stocks from a specific industry

Owning only stocks with high dividend yields