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Please mark the only correct statement about the three main valuation methods used in capital budgeting: a. The FTE (flow-to-equity) is easier to use because
Please mark the only correct statement about the three main valuation methods used in capital budgeting: a. The FTE (flow-to-equity) is easier to use because we do not have to adjust the FCFs for interest payments and changes in the firm's net debt b. the WACC method can be used when the debt to equity ratio is changing over time C. the APV method must add the PV of the Interest Tax Shield because this method uses the unlevered cash flows to obtain VU d. the WACC method is easier to apply than the APV method when the firm does not maintain a constant debt-equity ratio (DN does not enter calculation)
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