You valued a publically listed firm using a DCF model with a perpetuity terminal value (TV). Your model-estimated share price is 40% less than the market-traded share price. How can you make your model-estimated share price closer to the market-traded share price? You can:

Select one:

a.

Raise the required return or WACC.

b.

Raise the beta of equity.

c.

Lower the growth rate of the perpetuity terminal value.

d.

Raise the market risk premium.

e.

Lower the risk free rate.