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Credit Analyst Interview Question:
Tell me what do you use for the discount rate in a DCF valuation?
Submitted by: MuhammadIf you are forecasting free cash flows to the firm, you normally use the Weighted Average Cost of Capital (WACC) as the discount rate. If you are forecasting free cash flows to equity, you use the cost of equity.
Submitted by: Muhammad
Submitted by: Muhammad
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