If You Want to Value a Firm That Has Consistent

question 65

Multiple Choice

If you want to value a firm that has consistent earnings growth,but varies how it pays out these earnings to shareholders between dividends and repurchases,the simplest model for you to use is the:

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

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Definitions:

Discriminative Operant

A behavior that is more likely to be performed in the presence of a specific stimulus because the behavior has been reinforced in the presence of that stimulus in the past.

Stimulus Generalization

The process in which a conditioned response is observed, not only to the original stimulus but also to similar stimuli.

Discrimination Learning

A process by which an organism learns to respond differently to various stimuli, distinguishing between similar but distinct cues.

Excitatory Generalization Gradient

The tendency for the conditioned response to be elicited by stimuli that are similar to the conditioned stimulus.