QUESTION 16What must occur to make using net cash flows into the firm result in the same estimate of value as using dividends paid out of the firm?OA. the firm must pay an increasing dividend payment each yearOB. The cost of equity must be greater than the overall WACCOC. the firm must generate a rate of return on reinvested free cash flow equal to the discount rate used by the investorD. All of the above must occur

Cash flow refers to the amount of cash that is generated or used by a business over a specific…

Answered: What must occur to make using net cash…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter12: Valuation: Cash-flow Based Approaches

Section: Chapter Questions

Problem 1CIC

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