Multiple Choice
Which of the following are often viewed as disadvantages of the adjusted present value method?
A) Ignores the effects of leverage on the discount rate as debt is repaid
B) Requires estimation of the cost and probability of financial distress
C) It is unclear how to define the proper discount rate
D) A and B only
E) A, B, and C
Correct Answer:
Verified
Correct Answer:
Verified
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