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The discounted cash flow approach is useful for __________. graphing an asset's position on the security market line evaluating whether an asset is over-valued, under-valued

The discounted cash flow approach is useful for __________.

  • graphing an asset's position on the security market line
  • evaluating whether an asset is over-valued, under-valued or correctly priced
  • determining the value of future profits (or losses) in today's terms
  • determining the value of a company's publicly traded equity

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