Question
The flow to equity approach A. allows us to continue to use WACC in the valuation formula. B. All of these answers are correct. C.
The flow to equity approach
| A. | allows us to continue to use WACC in the valuation formula. | |
| B. | All of these answers are correct. | |
| C. | requires that we calculate a separate tax shield cash flow. | |
| D. | nets out all cash flows to debt holders from the free cash flows each year to determine the cash flows to equity holders. |
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Financial Management
Authors: I.M. Pandey
11th Edition
9325982293, 978-9325982291
