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:

Concerts

Live performances of music before an audience, ranging from solo performances to ensemble or orchestral presentations.

Buyers

Individuals or entities that purchase goods or services for personal use, consumption, or investment.

Sellers

Individuals or entities that offer goods or services for sale in the market.

Common Resources

Natural or man-made resources that are not owned by anyone, cannot exclude others from using, and are susceptible to overuse and depletion.