Which is not true about the flows to equity model

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Problem 1: Which of the following is not true about the flows to equity model

Group of answer choices

Option 1: forecasts cash flows to be discounted after subtracting flows to debtholders and preferred shareholders

Option 2: uses the weighted-average cost of capital

Option 3: the cash flows available to common stockholders

Option 4: cash flows include cash interest payments, debt repayments, and preferred dividends

Reference no: EM132893284

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