If You Want to Value a Firm but Don't Want

question 84

Multiple Choice

If you want to value a firm but don't want to explicitly forecast its dividends,share repurchases,or its use of debt,what is the simplest model for you to use?

• A)Discounted free cash flow model
• B)Dividend discount model
• C)Enterprise value model
• D)Total payout model

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Definitions:

Secondary Research

The process of gathering and analyzing existing data from previously completed studies, reports, or available literature.

Alphabetical Order

The sequence of arrangement based on the first letter of each item according to the English alphabet; akin to alphabetical listing but focuses on the process.

Limitation

A restriction or boundary that defines the scope or extent of something, often highlighting a weakness or drawback.

Reservation

The act of holding or booking a place, item, or service for future use, or a doubt or objection raised regarding a particular point or proposal.