For discounted cash flow methods, the discount rate used is: | Faculties

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Mr. Dubey

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Q. For discounted cash flow methods, the discount rate used is:

(A) fixed arbitrarily
(B) equivalent to bank rate.
(C) equivalent to firm’s average cost of capital.
(D) equivalent to final rate of dividend.

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✅ Correct Answer: (C) equivalent to firm’s average cost of capital.

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