What considerations/assumptions underline forecasts made using DCF models.
What considerations/assumptions underline forecasts made using DCF models.
Homework Answers
The considerations/assumptions underlying forecasts with DCF model are -
A) the value of Investment today is the present value of the future cash flows he expects to receive and ultimately he will be repaid for his investment in form of dividends
B) The company must have a history of paying dividends
C) The perspective should be that of a minority shareholder
D) the divident policy of the firm should be clear and should be related to the earnings of a firm
E) It reflects the long term earning potential of the company
F ) the company is valued using going concern to arive at the terminal value
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What considerations/assumptions underline forecasts made using
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