请帮忙解释一下这个问题

问题如下：

An analyst noticed that an investee company’s governance was worsening. To account for this, the analyst is most likely to increase:

选项：

A.the company’s equity value. B.the future cash flows from the company’s operating activities. C.the discount rates in the valuation model used to value the company.

解释：

C is correct. Worsening governance practices identified in a company (e.g., newly elected board members might have poor skill sets, the board is left with a low number of independent members, or members of the board have long tenures leading to groupthink) lead to an increase in the discount rates used to value the company in a valuation model such as DCF analysis. The increase in discount rates leads to a reduction (not increase) in the company’s equity value, and a company with poor governance practices risks a reduction in cash flows, not an increase.