Which of the following statements is/are correct?
I. Going-concern value of a firm is equal to the present value of expected net income.
II. When a buyer values a target firm, the appropriate discount rate is the buyer's weighted-average cost of capital
III. The liquidation value estimate of terminal value usually vastly understates a healthy company's terminal value.
IV. The value of a firm's equity equals the discounted cash flow value of the firm minus all liabilities.
II only III only
I and II only
II and III only