Identify the incorrect statement concerning valuation methods.

A. A major difficulty with the price/earnings ratio method is determining the future cash flows to which the price/earnings ratio is applied B. The discounted cash flow method looks at the incremental cash flows arising from a proposed acquisition C. The market capitalisation of a company reflects marginal trading in its shares D. Net asset valuations are often of little relevance in deciding on a bid price E. The dividend growth model offers a deprival value for target shareholders