The Flow-To-Equity (FTE)approach in Capital Budgeting Is Defined as The

Multiple Choice

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

A) discounting of all project cash flows at the overall cost of capital.
B) scale enhancing discount process.
C) discounting of a project's levered cash flows to the equityholders at the required return on equity.
D) dividends and capital gains that will be available to flow to shareholders of a firm.
E) discounting of a project's unlevered cash flows to the equityholders at the WACC.