#
Cost of Capital Using Discounted Cash Flow Approach
**Topics:**
Discounted cash flow,
Net present value,
Investment /
**Pages:** 5 (1052 words) /
**Published:** Sep 22nd, 2011

**Topics:**Discounted cash flow, Net present value, Investment /

**Pages:**5 (1052 words) /

**Published:**Sep 22nd, 2011

Rs=D1/P0 + Expected g

The discounted cash flow approach represents the net present value of project cash flows available to all providers of capital, net of the cash needed to be invested for generating the projected growth. The concept of DCF valuation is based on the

References: Ehrhardt, M. C., & Brigham, E. F. (2011). Corporate finance: A focused approach (4th ed.). Mason, OH: South-Western Cengage Learning. McClure, B. (2011). Pros and Cons of Discount Cash Flow Analysis. Retrieved on May 25, 2011 from http://www.investopedia.com/university/dcf/dcf5.asp). Macabacus (2011). Discount Cash Flow Analysis. Retrived on May 25, 2011 from http://www.macabacus.com/valuation/DCF/terminal-value.html. Wikipedia: The free encyclopedia. (2004, July 22). FL: Wikimedia Foundation, Inc. Retrieved May 17, 2011, from http://www.wikipedia.org