The DDA and VCSC methods give the same valuation.]

Question

Quizplus · Accepted Answer

The DDA (Discounted Dividend Approach) and VCSC (Venture Capital Method) both use discounted cash flow (DCF) analysis to determine the valuation of a company, but they focus on different types of cash flows. DDA looks at dividend payments to shareholders, while VCSC considers the potential future returns for an investor who buys equity in the company. However, if both methods are correctly applied using the same inputs, they should yield the same valuation result.

The DDA and VCSC Methods Give the Same Valuation.]