Examlex
Which of thfollowing statements is INCORRECT about C3 plants?
Free Cash Flow
Free cash flow is a measure of financial performance that shows the amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.
Discount Rate
The discount rate applied in the process of discounted cash flow (DCF) analysis to calculate the current value of anticipated future cash flows.
Abnormal Earnings Approach
A valuation method that estimates a company's value based on the prediction of future abnormal earnings, defined as earnings in excess of a normal return on investment.
Free Cash Flow Approach
A valuation method focusing on the cash flows that a company can generate after accounting for capital expenditures required to maintain or expand the asset base.
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