IDNLearn.com: Your reliable source for finding precise answers. Ask any question and get a thorough, accurate answer from our community of experienced professionals.
Sagot :
Answer:
True
Explanation:
Projected free cash flows should be discounted at the firm's weighted average cost of capital to find the value of its operations.
Free Cash flow is refereed to all cash available for distributions after all obligations are taken into account.
So free cash flow from the planning period and representative period should be discounted back using firm's weighted average cost of capital to find the value of its operations.
We appreciate your contributions to this forum. Don't forget to check back for the latest answers. Keep asking, answering, and sharing useful information. Thank you for choosing IDNLearn.com. We’re dedicated to providing clear answers, so visit us again for more solutions.