What is the best data to use for the growth rate estimate for DCF cost of capital estimates?
A) Growth in the GDP
B) Inflation
C) Historical data
D) Analyst's forecasts

Question

Quizplus · Accepted Answer

Analyst's forecasts can provide up-to-date and relevant information on a specific company, industry, or market, which makes them more reliable than using broad indicators such as GDP or inflation. Historical data can also be useful, but it may not reflect current market conditions or future expectations.

What Is the Best Data to Use for the Growth