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:

Birth Rate

Birth rate is the number of live births per thousand people in a population over a given period of time.

R-Selected

A term used in ecology to describe organisms that produce many offspring, with a strategy focusing on quantity over quality for survival.

K-Selected

A term describing organisms that produce fewer offspring, with a greater emphasis on parental care and survival of each offspring.

Severe Blizzard

A violent snowstorm characterized by strong winds, low temperatures, and low visibility lasting for a prolonged period.