"When doing a DCF valuation, also known as Discounted Cash flow valuation, the firm's free cash flow is forecasted, and then the same free cash flow is discounted back to the present using a discount rate, resulting in an overall value of the enterprise. DCF is a method of valuing a company in which the present value of all of the free cash flow a company can generate over a period of time is discounted at a rate that is determined by calculating the cost of capital of the same company, wherein the capital structure consists not only of equity but also of debt and preferred equity."

ABC has 50% equity requiring a Rate of Return of 12%, and debt with an interest rate of 6%. ABC has a tax rate of 33%. ABC has equity of $1 billion and Debit of 1 Billion. A risk assessment was done on the two subsidiaries: DFG has 66% of the risk; FGH has 66% of the risk of the company.

Should the DCF be one discount rate for all capital projects at the company?