Which of the following statements is CORRECT? a. The value of operations of a stock is...
Which of the following statements is CORRECT?
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Homework Answers
Answer is (C).
Because in case of stable free cash flows , constant growth model is of no use as the share price can be calculated using perpetuity formula i.e.P0=d/r
where P0 is share price today,
d is constant free cash flow and
r is rate of discounting I.e. risk free rate.
Add Answer to:
Which of the following statements is CORRECT?
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