The Value of a Firm Is Defined As

Multiple Choice

The value of a firm is defined as:

A) The sum of its free cash flows in each year, discounted at the firm's weighted average cost of capital (WACC)
B) The sum of its cash flows in each year, discounted at the firm's cost of capital
C) The sum of its free cash flows in each year, discounted at the average cost of debt
D) The sum of its cash flows in each year, discounted at the rate provided by the Federal Bank of each firm's home country on a permanent basis