The free cash flow-to-equity method or the dividend discount model uses:

I) the weighted average cost of capital for discount rate;

II) cash flows to equity, after interest and after taxes;

III) the cost of equity capital as the discount rate;

IV) after-tax cash flows without considering interest and dividend payments

Group of answer choices

II and III only

I and III only

I and II only

II and IV only

Please explain thank you