If a Firm Does Not Issue Dividends, Which of the Following

question 100

Multiple Choice

If a firm does not issue dividends, which of the following models would not be applicable?

• A) Two-stage growth
• B) Free cash flow
• C) PEG
• D) Residual income
• E) Price-Book Ratio

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Definitions:

Higher-order Conditioning

A form of conditioning involving the modification of reaction to a neutral stimulus by first associating this stimulus with another conditioned stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, is able to elicit a conditioned response.

Unconditioned Stimulus

In behavioral psychology, a stimulus that naturally and automatically triggers a response without any learning process involved.

Conditioned Responses

Learned reactions that occur in response to previously neutral stimuli after conditioning.