Question: QUESTION THREE: (5 marks) Total 15 marks! Discounted cash flow (DCF) technique is one of the quantitative method for estimating the enterprises value of a

QUESTION THREE: (5 marks) Total 15 marks! Discounted cash flow (DCF)

QUESTION THREE: (5 marks) Total 15 marks! Discounted cash flow (DCF) technique is one of the quantitative method for estimating the enterprises value of a company. Required: (a) Discuss three steps a valuer would follow while valuing a firm using the DCF approach. (10 marks) (b) Discuss three errors that you could commit as a valuer while using the discounted cash flow technique. (10 marks) [Total 20 marks]

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