Why the free cash flow valuation method

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Consider you are a valuation analyst for Goodyear Tire and your company is planning to acquire RGC Tire. RGC’s stock price dropped by 78% YoY and they missed their dividend payment for each of the prior three quarters. Describe why the free cash flow valuation method would be useful in this case. Provide your rationale and any supporting data.

Reference no: EM131056168

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