What to use to discount in valuation models: FCFF - WACC FCFE - equity DDM - equity RI - cost of equity ATCF’s in corp fin - WACC Private equity - required return on equity adjusted for prob of failure by (1+required)/(1-failure) bimonial option pricing - rfr Any other good ones??
I thought we use Required Return on Equity for RI???
^^ correct…i just edited
For RI, are you sure about WACC? I would have used required return on equity.