in Credit by

What do you use for the discount rate in a DCF valuation?

1 Answer

0 votes
by

If you are forecasting free cash flows to the firm, you normally use the Weighted Average Cost of Capital (WACC) as the discount rate.  If you are forecasting free cash flows to equity, you use the cost of equity.

Related questions

0 votes
    How do you calculate the terminal value in a DCF valuation?...
asked Oct 10, 2020 in Credit by Editorial Staff
0 votes
    DCF is an abbreviation for__________ (a) Debian control function (b) Differentiative common function (c) Debian ... R Programming Select the correct answer from above options...
asked Feb 12, 2022 in Education by JackTerrance
0 votes
    Write a JAVA program. A computer manufacturing company offers 20% discount on laptop. If the price of any laptop ... ANY INPUT METHOD Select the correct answer from above options...
asked Dec 22, 2021 in Education by JackTerrance
0 votes
    Write a JAVA program. A computer manufacturing company offers 20% discount on laptop. If the price of any laptop ... discounted price. Select the correct answer from above options...
asked Dec 21, 2021 in Education by JackTerrance
0 votes
    8. Rewrite the following using ternary operator. (a) if (bill>10000) discount=bill*10.0/100; else discount=bill*5.0/100; Select the correct answer from above options...
asked Nov 30, 2021 in Education by JackTerrance
0 votes
    What methods do you use to compare the liquidity, profitability, and credit history of a company?...
asked Oct 10, 2020 in Credit by Editorial Staff
0 votes
    What is the current LIBOR rate?...
asked Oct 10, 2020 in Credit by Editorial Staff
0 votes
    I need to know how to use the delete_channel command in discord.py may someone please post a code sample ... Questions for Interview, JavaScript MCQ (Multiple Choice Questions)...
asked Apr 12, 2022 in Education by JackTerrance
0 votes
    I need to know how to use the delete_channel command in discord.py may someone please post a code sample ... Questions for Interview, JavaScript MCQ (Multiple Choice Questions)...
asked Apr 10, 2022 in Education by JackTerrance
0 votes
    What tools do you use for performance testing and automation?...
asked Feb 9, 2021 in Technology by JackTerrance
0 votes
    For a reaction, A+B→ Product, the rate law is given by r=k[A] 1 2 [B]2 . What is the order of the reactio ? Select the correct answer from above options...
asked Jan 4, 2022 in Education by JackTerrance
0 votes
    The rate of the chemical reaction doubles for an increase of 10K in absolute temperature from 300K . Calculate Ea . Select the correct answer from above options...
asked Jan 4, 2022 in Education by JackTerrance
0 votes
    From the rater expression for the following reactions, determine their order of reaction and dimensions of the rate ... k[C2H5Cl] Select the correct answer from above options...
asked Jan 4, 2022 in Education by JackTerrance
...