If You Want to Value a Firm but Do Not

question 69

Multiple Choice

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

• A)the discounted free cash flow model
• B)the dividend-discount model
• C)the enterprise value model
• D)the total payout model
• E)net present value model

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Definitions:

Big Data

Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Digitized Data

Data that has been converted into a digital format, enabling it to be processed, stored, and transmitted electronically.

Integration

The action of combining or coordinating separate elements so they function together as a whole.

Unstructured Data

Information that does not have a pre-defined data model or is not organized in a fixed manner, making it difficult to process and analyze.