问题如下:
which of the following discount rate is appropriate for discounting cash flow to equity in valuation?
选项:
A.WACC
B.the required return on equity
the firm’s cost of capital.
解释:
Being used as discount rates in valuation, required returns need to be defined appropriately relative to the cash flows to be discounted.When a cash flow to equity is discounted, the required return on equity is an appropriate discount rate.
为什么C选项不对呢?