analyst is trying to determine the intrinsic value of a certain share. Which of the following is true with regards to the methods of stock valuation? a. Discounting techniques does not involve forecasting future dividends b. Free cash flow is important in discounted dividend model c. Aside from the intrinsic value, the market value of the firm can also be determined by free cash flow model d. Non-constant growth stock is valuated in the same way as preferred stock
analyst is trying to determine the intrinsic value of a certain share. Which of the following is true with regards to the methods of stock valuation? a. Discounting techniques does not involve forecasting future dividends b. Free cash flow is important in discounted dividend model c. Aside from the intrinsic value, the market value of the firm can also be determined by free cash flow model d. Non-constant growth stock is valuated in the same way as preferred stock
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 12QTD
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An analyst is trying to determine the intrinsic value of a certain share. Which of the following is true with regards to the methods of stock valuation?
a. Discounting techniques does not involve forecasting future dividends
b. Free cash flow is important in discounted dividend model
c. Aside from the intrinsic value, the market value of the firm can also be determined by free cash flow model
d. Non-constant growth stock is valuated in the same way as preferred stock
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