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:

Respiration

The process of inhaling oxygen and exhaling carbon dioxide, essential for life.

Digestion

The breakdown of food into smaller components that can be absorbed and assimilated into the body.

Vomiting

The forceful expulsion of stomach contents through the mouth.

Enteric

Relating to or occurring in the intestines.