The methodology for valuing cross-border transactions using discounted cash flow analysis is substantially different from that employed when both the acquiring and target firms are within the same country. True of False

Question

Quizplus · Accepted Answer

The fundamental methodology for valuing cross-border transactions using discounted cash flow (DCF) analysis is not substantially different from that employed when both the acquiring and target firms are within the same country. The core principles of DCF, including forecasting future cash flows and discounting them to their present value, apply universally. However, adjustments may be made to account for factors like exchange rates, country risk, and tax implications, but these adjustments do not change the underlying methodology.

The Methodology for Valuing Cross-Border Transactions Using Discounted Cash Flow