When using the free-cash flow model, cash flows are discounted at the weighted average cost of capital

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When using the free-cash flow model, cash flows are discounted at the weighted average cost of capital (WACC) and when using the dividend discount model, dividends are discounted at the required rate of return of the stock.

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Principles of Managerial Finance

ISBN: 978-0133507690

14th edition

Authors: Lawrence J. Gitman, Chad J. Zutter

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Posted Date: Oct 08, 2020 03:45 PM

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When using the free-cash flow model, cash flows are discounted at the weighted average cost of capital

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Principles of Managerial Finance

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