8. Which of the following statements are correct with respect to the discounted cash flow (DCF)...
8. Which of the following statements are correct with respect to the discounted cash flow (DCF) analysis? There may be more than one correct answer to this question.
a) The DCF analysis relies upon discounting projected unlevered free cash flows to estimate the enterprise value of a company
b) The DCF analysis relies upon discounting projected company’s cash flows to estimate the market value of equity of a company
c) The DCF analysis only considers a defined projection period
d) The DCF analysis considers a defined projection period as well as a terminal value
unanswered
Homework Answers
The correct statements are
a) The DCF analysis relies upon discounting projected unlevered free cash flows to estimate the enterprise value of a company
d) The DCF analysis considers a defined projection period as well as a terminal value
DCF method takes into account all the cash flows and a terminal value discounted to obtain enterprise value
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8. Which of the following statements are correct with respect to
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