Estimates of a Stock's Intrinsic Value Calculated with the Free

question 68

Multiple Choice

Estimates of a stock's intrinsic value calculated with the free cash flow methodology depend most critically on ________.

• A) the terminal value used
• B) whether one uses FCFF or FCFE
• C) the time period used to estimate the cash flows
• D) whether the firm is currently paying dividends

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Definitions:

Motivator Factors

In the job content are sources of job satisfaction.

Job Enrichment

Enhancing a job by adding more meaningful tasks and duties to make it more rewarding and satisfying.

Acquired Needs Theory

a psychological theory that suggests human needs are developed over time based on life experiences.

Motivator-hygiene Theory

A theory stating that certain factors in the workplace cause job satisfaction (motivators), while a separate set of factors cause dissatisfaction (hygiene factors).