Answered: How is the impact of uncertainty…

How is the impact of uncertainty reflected in a discounted cash flow (DCF) analysis?a) Debt/equity mixb) Discount ratec) Income tax rated) Interest coverage ratio

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter26: Mergers And Corporate Control

Section: Chapter Questions

Problem 5MC

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Question

How is the impact of uncertainty reflected in a discounted cash flow (DCF) analysis?
a) Debt/equity mix
b) Discount rate
c) Income tax rate
d) Interest coverage ratio

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