Is FCFE discounted on real or nominal discount and growth rate? Thank you

I thought it depends on wheather the cash flows are real or nominal, if they are real then use the real rate, nominal use the nominal rate

The question does not mention anything about real or nominal figures. It simply says “Selected Financial Statement Information” by which I assume NI is nominal, and so FCFE. They however discounted the figures on real terms. Grateful for any help!

Give us what question you’re looking at… pedpenny is correct, if the figures are in nominal terms, discount at the nominal rate. If the figures are in real terms, discount at the real rate. If it’s the income statement and NI, that’s definitely in nominal terms.

pedpenny Wrote: ------------------------------------------------------- > I thought it depends on wheather the cash flows > are real or nominal, if they are real then use the > real rate, nominal use the nominal rate +1