Which of the following is the correct method to use to calculate firm value using the WACC method?

a. Discount the expected cash flows based on all-equity financing at the overall cost of capital for the firm, E( rfirm)

b. Calculate the expected cash flows for the firm based on the firms expected capital structure, and then discount them at the firms weighted average cost of capital, WACC.

c. Calculate the expected cash flows for the firm based on the firms expected capital structure, and then discount them at the overall cost of capital for the firm, E( rfirm)

d. Discount the expected cash flows based on all-equity financing at the firms weighted average cost of capital, WACC