##### 47 A company has received a low ESG score. The available ESG-related information about the company is qualitative only. Which of the following is most appropriate when calculating the company's terminal value? | Chartered Financial Analyst Level 2 Quiz - LeetQuiz
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47 A company has received a low ESG score. The available ESG-related information about the company is qualitative only. Which of the following is most appropriate when calculating the company's terminal value?
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A
Adjust the cost of equity by adding a risk premium
B
Adjust the projected free cash flows to reflect the ESG risks
C
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Make no adjustment because qualitative ESG is difficult to quantify