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Exam F3 All Questions
Exam F3 All Questions

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CIMA Strategic F3 Question # 82 Topic 9 Discussion

F3 Exam Topic 9 Question 82 Discussion:
Question #: 82
Topic #: 9

NNN is a company financed by both equity and debt. The directors of NNN wish to calculate a valuation of the company's equity and at a recent board meeting discussed various methods of business valuation.

Which THREE of the following are appropriate methods for the directors of NNN to use in this instance?


A.

Total earnings multiplied by a suitable price-earnings ratio.


B.

Cash flow to all investors discounted at WACC less the value of debt.


C.

Cash flow to all investors discounted at WACC.


D.

Cash flow to equity discounted at the cost of equity less the value of debt.


E.

Cash flow to equity discounted at the cost of equity.


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