When we talk about the value of a firm being the discounted future-free cash flows, we mean which financial model?
A) Three Statement Model
B) Option Pricing Model
C) Forecasting Model
D) Discounted Cash Flow Model

Question

Quizplus · Accepted Answer

The Discounted Cash Flow (DCF) Model is used to estimate the value of an investment based on its expected future cash flows, which are discounted back to their present value.

When We Talk About the Value of a Firm Being