Valuation models use the relationship between share value,future cash flows,and the cost of capital to estimate these quantities for a given firm.Realistically,for a publicly traded firm,what can we reliably use such models to determine? I.the firm's future cash flows

Question

Quizplus · Accepted Answer

Valuation models can reliably be used to determine the firm's future cash flows and share value. However, the cost of capital may vary and can be difficult to estimate accurately, so it may not always be reliable in valuation models. Therefore, option I and II are the most reliable options.

Valuation Models Use the Relationship Between Share Value,future Cash Flows,and