Posted: January 8th, 2016
Which of the following statements is CORRECT?
Which of the following statements is CORRECT?
- To implement the corporate valuation model, we discount projected free cash flows at the weighted average cost of capital.
- To implement the corporate valuation model, we discount net operating profit after taxes (NOPAT) at the weighted average cost of capital.
- To implement the corporate valuation model, we discount projected net income at the weighted average cost of capital.
- To implement the corporate valuation model, we discount projected free cash flows at the cost of equity capital.
- The corporate valuation model requires the assumption of a constant growth rate in all years.