Which of the following statements regarding business valuation is most correct?

a. The DCF method typically forecasts cash flow for several years (say 5) and then uses a terminal value to represent the value of all business.

b. The most common DCF method focuses on cash flows to equity holders, because the ultimate goal is to equity stake in the business.

c. In the free equity cash flow DCF method, the estimated cash flows are discounted at the corporate (weighted average) cost of capital.

d. Both a and b are correct