Homework answers / question archive / Which requirement(s) has(have) to be true to assume a constant WACC (Weighted Average Cost of Capital) in the context of DCF valuations applying the WACC-approach? 1) Constant cash flow to equity holder 2) Constant debt to equity ratio 3) Constant free cash flow 4) Constant cost of equity and debt   a) Only (1) and (3) are correctB) Onl (4) is correct C) Only (2) and (4) are correct d) Only (1) and (2) are correct

Which requirement(s) has(have) to be true to assume a constant WACC (Weighted Average Cost of Capital) in the context of DCF valuations applying the WACC-approach? 1) Constant cash flow to equity holder 2) Constant debt to equity ratio 3) Constant free cash flow 4) Constant cost of equity and debt   a) Only (1) and (3) are correctB) Onl (4) is correct C) Only (2) and (4) are correct d) Only (1) and (2) are correct

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Which requirement(s) has(have) to be true to assume a constant WACC (Weighted Average Cost of Capital) in the context of DCF valuations applying the WACC-approach?

1) Constant cash flow to equity holder

2) Constant debt to equity ratio

3) Constant free cash flow

4) Constant cost of equity and debt

 

a) Only (1) and (3) are correctB) Onl (4) is correct

C) Only (2) and (4) are correct

d) Only (1) and (2) are correct