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Projected free cash flows should be discounted at the firm's weighted average cost of capital to find the value of its operations. True False

Sagot :

Zvikoidn

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.

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