The Free Cash Flow Model,as Compared to Other Models,tends to Be

question 69

Multiple Choice

The free cash flow model,as compared to other models,tends to be most helpful when valuing a share of stock in a:

• A)firm that pays dividends that increase at a constant rate of growth.
• B)firm having similar growth opportunities as other firms.
• C)non-dividend-paying firm that has external financing needs.
• D)firm that plans to lower its dividend growth rate in the near future.
• E)firm that pays a fixed annual dividend.