If You Want to Value a Firm That Consistently Pays

question 5

Multiple Choice

If you want to value a firm that consistently pays out its earnings as dividends, the simplest model for you to use is the ________.

• A) enterprise value model
• B) method of comparables
• C) dividend-discount model
• D) discounted free cash flow model

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Definitions:

Arrangement

The act of organizing or positioning objects or elements in a structured or specific order.

Rearrange

To change the positioning, order, or organization of something.

Inducing Structure

Refers to the cognitive processes involved in identifying the underlying structure of a problem or situation to facilitate understanding or problem-solving.

Relations

The ways in which two or more concepts, objects, or people are connected; a particular way in which someone or something is related or connected to something else.