Which of the following statements is NOT CORRECT about the corporate valuation model?

a) The corporate valuation model discounts free cash flows by the required return on equity.

b) An important step in applying the corporate valuation model is forecasting the firm's pro forma financial statements.

c) The corporate valuation model can be used to find the value of a division.

d) The corporate valuation model can be used both for companies that pay dividends and those that do not pay dividends.