You Are Attempting to Value the Shares of a New

question 162

Multiple Choice

You are attempting to value the shares of a new, high-technology firm in a developing industry. You would MOST likely:

• A) Use the growth dividend model.
• B) Use the non-constant growth dividend model.
• C) Use the zero growth dividend model.
• D) Find the value by valuing the stock as a perpetuity.
• E) Not be able to value this company.