Which of the Following Is/are Needed When the Discounted Cash

question 8

Multiple Choice

Which of the following is/are needed when the discounted cash flow approach is used to value equity securities?

• A)Estimate the expected future cash flows associated with the security.
• B)Estimate the size and timing of the expected cash flows associated with the security.
• C)Determine the appropriate discount rate based on an estimate of the risk associated with the security.
• D)All of these.

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