Through DCD method, enterprises can have a more comprehensive understanding of their capital structure, including debt-equity ratio, annual interest rates of bonds and loans, market value of equity, expected dividends and cash flow forecasting methods. Enterprises can also optimize financial objectives by adjusting capital structure, such as increasing equity and reducing liabilities.
DCD method is also very important for investors in international trade. They can evaluate the company's valuation and investment value by analyzing the capital structure and the discount rate of cash flow. When making investment decisions for multinational enterprises, DCD method can help investors to estimate the balance between risk and return more accurately, thus reducing investment risks and achieving investment goals better.