Credit (Risk) Analyst Question:

Download Job Interview Questions and Answers PDF

Tell me what do you use for the discount rate in a DCF valuation?

Credit (Risk) Analyst Interview Question
Credit (Risk) Analyst Interview Question

Answer:

If you are forecasting free cash flows to the firm, you normally use the Weighted Average Cost of Capital (WACC) as the discount rate. If you are forecasting free cash flows to equity, you use the cost of equity.

Download Credit (Risk) Analyst Interview Questions And Answers PDF

Previous QuestionNext Question
Explain me what is a reasonable Debt/Capital ratio?Do you know what is 'Over-The-Counter - OTC'?