If You Want to Value a Firm but Do Not

question 21

Multiple Choice

If you want to value a firm but do not want to explicitly forecast its dividends, the simplest model for you to use is ________.

• A) the discounted free cash flow model
• B) the dividend-discount model
• C) the enterprise value model
• D) None of the above models can be used if you do not want to forecast dividends or use of debt.

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Definitions:

Unfair Trade Practices

Business methods considered unethical or illegal, which deceive, mislead, or harm consumers or competitors.

Trade Barriers

Measures imposed by governments to restrict international trade, typically to protect domestic industries, including tariffs, quotas, and regulations.

Protected Products

Goods that are safeguarded by trade policies or tariffs to give domestic producers a competitive advantage over foreign imports.

Tariff Rates

Taxes or duties imposed by a government on imported or, less commonly, exported goods, often used to protect domestic industries or generate revenue.