Company using the free cash flow valuation model

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Reference no: EM13878224

Which of the following is the appropriate way to calculate the price of a share of a given company using the free cash flow valuation model?

A) P0 = Div1/(rE - g)

B) P0 = PV(Future Free Cash Flow of Firm)/(Shares Outstanding0)

C) P0 = [Div1/(rE - g)]/(Shares Outstanding0)

D) P0 = (V0 + Cash0 - Debt0)/(Shares Outstanding0)

Reference no: EM13878224

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