Q404
Method uses for an estimation of cost of equity is classified as
A.
market cash flow
B.
future cash flow method
C.
discounted cash flow method
AnswerD.
present cash flow method
Answer: Option C
Solution
Answer: Option C
Solution:
Method uses for an estimation of cost of equity is classified as discounted cash flow method. Discounted cash flow (DCF) is a valuation method used to estimate the value of an investment based on its future cash flows.