n NISM Certifications
XV NISM Series XV
Medium

When valuing a business, cash flow forecasts can be prepared by _______.

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Looking at internal determinants of growth in a company

  2. B

    Applying a rate estimated by the analyst

  3. C

    Using historical growth rates of the company

  4. All of the above

    Correct answer

Why this is the answer

Cash flow forecasts can rely on internal growth factors, historical growth trends, and analyst assumptions to estimate future performance.

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