Discounted Cash Flow Techniques for Equity Valuation May Use One

question 28

True/False

Discounted cash flow techniques for equity valuation may use one of the following: (1)dividends,(2)Free cash flow or (3)coupons.

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Definitions:

Economy-of-Scope

Economic efficiencies derived from variety, rather than volume, where producing a wider range of products can lead to lower average costs.

Economies of Scale

The cost advantage achieved when production becomes efficient, as the scale of the operation grows and the cost per unit of output decreases.

Real Estate Developer

An individual or company that builds or renovates buildings or land developments, managing the process from inception to completion.

Synergies

Refers to the combined effect of group efforts or operations that results in a greater impact or benefit than the sum of individual efforts.