The Flow-To-Equity Method Uses

question 62

Multiple Choice

The flow-to-equity method uses:
I.cash flows to equity, after interest and after taxes;
II.the cost of equity capital as the discount rate;
III.the weighted average cost of capital for discount rate;
IV.after-tax cash flows without considering interest and dividend payments

• A)I and II only
• B)II and III only
• C)I and III only
• D)II and IV only

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Definitions:

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censoring themselves, revealing unconscious thoughts and feelings.

Psychoanalysis

A therapeutic approach developed by Freud, focusing on exploring unconscious motivations and conflicts.

Therapeutic Technique

A specific method or procedure used in therapy to help individuals overcome their psychological problems.

Eclectic

Employing elements from a diverse range of sources, styles, or ideas.