why do financial analysts forecast unlevered free cash flow to perform the discounted cash flows? a.) unlevered free cas
Posted: Wed May 18, 2022 11:59 pm
why do financial analysts forecast unlevered free cash flow
to perform the discounted cash flows?
a.) unlevered free cash flows best represents the cash
generating ability of a business
b.) this is the most common approach by wall street financial
analysts and looks at future cash flows before the cost of
borrowing
c.) when the analyst forecasts free cash flows to equity,
considering leverage, the analyst must discount these cash flows by
the weighted average cost of capital (WACC) which is a complex
calculation
d.) a & b
e.) b & c
f.) all of the above
to perform the discounted cash flows?
a.) unlevered free cash flows best represents the cash
generating ability of a business
b.) this is the most common approach by wall street financial
analysts and looks at future cash flows before the cost of
borrowing
c.) when the analyst forecasts free cash flows to equity,
considering leverage, the analyst must discount these cash flows by
the weighted average cost of capital (WACC) which is a complex
calculation
d.) a & b
e.) b & c
f.) all of the above