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When Deriving the Equity Value of a Firm,an Analyst Forecasts

Question 13

Multiple Choice

When deriving the equity value of a firm,an analyst forecasts the real dividends expected to be paid in the future.In this case,which discount rate should be used?


A) The nominal rate of return
B) The real rate of return
C) The risk-free rate of return
D) The risk adjusted rate of return

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