The Most Appropriate Discount Rate to Use When Applying a FCFF

question 88

Multiple Choice

The most appropriate discount rate to use when applying a FCFF valuation model is the

• A) required rate of return on equity.
• B) WACC.
• C) risk-free rate.
• D) required rate of return on equity or risk-free rate, depending on the debt level of the firm.
• E) None of the options are correct.

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