anonymous
  • anonymous
Hi, Can anyone explain, why in some valuation models the sum of DFCF is divided by (1+ WACC)^(1/2). The reason of doing so is to eliminate the drawbacks of NPV assumption model, where cash flows occurring at the end of each period?
Finance
  • Stacey Warren - Expert brainly.com
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SOLVED
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chestercat
  • chestercat
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anonymous
  • anonymous
Just moves all cash flows to midyear cash flows... Nothing to do with NPV model but more a reaction to assuming that all cash flows occur at the end of each year rather than over the course of the year.
anonymous
  • anonymous
Thank you Aswath

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