Free cash flow model-valuing share of stock

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Reference no: EM131595883

The free cash flow model, as compared to other models, tends to be most helpful when valuing a share of stock in:

A. a firm that pays dividends that increase at a constant rate of growth.

B. various firms having similar growth opportunities.

C. a non-dividend paying firm that has external financing needs.

D. a firm that plans to lower its dividend growth rate in the future.

E. a firm that pays a fixed annual dividend.

Reference no: EM131595883

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