McqMate
| 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. 1 |
| Answer» C. Equivalent to firm’s average cost of capital. | |
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