The Flow-To-Equity Method: I. Uses Cash Flows to Equity, After Interest and After

question 59

Multiple Choice

The Flow-to-equity method:
I. uses cash flows to equity, after interest and after taxes
II. uses cost of equity capital as the discount rate
III. uses weighted average cost of capital for discount rate
IV. uses 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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