Which of the Following Valuation Methods Use(s )The Weighted Average

question 10

Multiple Choice

Which of the following valuation methods use(s ) the weighted average cost of capital (WACC ) as the discount factor?
I.The economic profit model.
II.The adjusted present value model.
III.The discounted cash flow model.
IV.None of the above.

• A)I and II only.
• B)I and III only.
• C)II and III only.
• D)IV.

---

Definitions:

Insured

An individual or entity that is covered under an insurance policy receiving protection against loss or damage specified in the policy terms.

Maryland Casualty Company

A specific insurance company known for providing a range of insurance products and services.

Diminution in Value

A reduction in the worth or market value of property.

Repairing

The act of fixing or restoring something that is broken or damaged to a good condition.