When deriving the equity value of a firm, an analyst forecasts the real dividends expected to be
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Question:
When deriving the equity value of a firm, an analyst forecasts the real dividends expected to be paid in the future. In this case, which discount rate should be used?
A. The nominal rate of return
B. The real rate of return
C. The risk free rate of return
D. The risk adjusted rate of return
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0321818171
2nd Canadian edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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