6.

6 of 24 Marks Which of the following statements is NOT CORRECT? O a. The corporate valuation model can be used both for companies that pay dividends and those that do not pay dividends. O b. The corporate valuation model discounts free cash flows by the required return on equity. Oc. The corporate valuation model can be used to find the value of a division o d. An important step in applying the corporate valuation model is forecasting the firm's pro forma financial statements. e. Free cash flows are assumed to grow at a constant rate beyond a specified date in order to find the horizon, or terminal, value. Unsure