easy · Investment Banking valuation-core

In a Discounted Cash Flow analysis, using the 'mid-year convention' generally results in:

1. A higher valuation because cash flows are assumed to be received sooner.
2. No change in valuation, as it only affects the timing of the terminal value.
3. A higher WACC because the risk is spread over a shorter duration.
4. A lower valuation because it assumes a more conservative cash flow profile.

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