easy · Investment Banking accounting

In a DCF analysis, what does the 'Mid-Year Convention' account for?

  1. The specific timing of dividend payments made to common shareholders during the fiscal year
  2. The assumption that cash flows are received evenly throughout the year rather than at year-end
  3. The seasonal fluctuations in net working capital that typically occur in the middle of a company's fiscal year
  4. The calendarization adjustment needed when a company operates on a non-December fiscal year-end

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