Question: 5 . Suppose you are seeking to value a stream of expected future cash flows that will be used to pay all future debt and

5 .

Suppose you are seeking to value a stream of expected future cash flows that will be used to pay all future debt and equity holder financing claims. What is the appropriate discount rate?

. 12.0 %

.

The weighted

-

average cost of capital

. 6.0 %

.

The required rate of return on equity, according the CAPM?

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