Which of the Following Is NOT a Necessary Step in the Discounted

question 22

Multiple Choice

Which of the following is NOT a necessary step in the Discounted Cash Flow Analysis method of valuing equity?

• A)Estimate a cost of capital.
• B)Estimate the present value of terminal value cash flows.
• C)Calculate the present value of free cash flows over the number of years in question.
• D)All of the above are necessary steps for the discounted cash flow method of valuation.

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