Question
When using the free-cash flow model, cash flows are discounted at the weighted average cost of capital (WACC) and when using the dividend discount model,
When using the free-cash flow model, cash flows are discounted at the weighted average cost of capital (WACC) and when using the dividend discount model, dividends are discounted at the required rate of return of the stock.
True or False
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True because free cash flow model ...
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Principles of Managerial Finance
Authors: Lawrence J. Gitman, Chad J. Zutter
14th edition
133507696, 978-0133507690
