n NISM Certifications
XV NISM Series XV
Medium

Discounted Cash Flow method can be used for valuation of an asset/business provided __________.

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Stream of future cash flows is known

  2. B

    Timings of future cash flows are known

  3. C

    Discount rate is known

  4. All of the above

    Correct answer

Why this is the answer

DCF valuation requires cash flow amounts, timing, and discount rate.

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