The enterprise method of valuation can be executed with either an after-tax or before-tax weighted average cost of capital as long as the rate is applied to the appropriate enterprise cash flows.

Question

Quizplus · Accepted Answer

The enterprise method of valuation focuses on the entire business entity, rather than just the equity, and can use either an after-tax or before-tax weighted average cost of capital as long as the rate is applied to the appropriate enterprise cash flows.

The Enterprise Method of Valuation Can Be Executed with Either