What is the added value of the multi-period models of discounted cash-flows over the constant-growth model in equity valuation analysis? They allow the firm’s dividend growth to vary over time. They allow the investor to account for the investment’s risk. They are more complicated to estimate. They forecast a higher valuation.
What is the added value of the multi-period models of discounted cash-flows over the constant-growth model in equity valuation analysis? They allow the firm’s dividend growth to vary over time. They allow the investor to account for the investment’s risk. They are more complicated to estimate. They forecast a higher valuation.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 13MC
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Question
What is the added value of the multi-period models of discounted cash-flows over the constant-growth model in equity valuation analysis?
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They allow the firm’s dividend growth to vary over time.
-
They allow the investor to account for the investment’s risk.
-
They are more complicated to estimate.
-
They
forecast a higher valuation.
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