The DCF model estimates a company`s __________ (value based on a company`s ability to generate cash flows) and is often presented in comparison to the company`s _____________.a.Intrinsic value; market valueb.Intrinsic value; historic valuec.Extrinsic value; historic valued.Extrinsic value; market valueClear my choice
Question
The DCF model estimates a companys __________ (value based on a companys ability to generate cash flows) and is often presented in comparison to the company`s _____________.a.Intrinsic value; market valueb.Intrinsic value; historic valuec.Extrinsic value; historic valued.Extrinsic value; market valueClear my choice
Solution
The DCF (Discounted Cash Flow) model estimates a company's intrinsic value (value based on a company's ability to generate cash flows) and is often presented in comparison to the company's market value. So, the correct answer is a. Intrinsic value; market value.
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