The Flow-To-Equity (FTE) Approach in Capital Budgeting Is Defined to Be

Multiple Choice

The flow-to-equity (FTE) approach in capital budgeting is defined to be the:

A) discounting all cash flows from a project at the overall cost of capital.
B) scale enhancing discount process.
C) discounting of the levered cash flows to the equity holders for a project at the required return on equity.
D) dividends and capital gains that may flow to shareholders of any firm.
E) discounting of the unlevered cash flows of a project from a levered firm at the WACC.