Which of the following is not an equity valuation model?
A)Residual income model
B)Dividend discount model
C)Free cash flow to equity model
D)Payback period model

Question

Quizplus · Accepted Answer

The payback period model is not an equity valuation model. It is a capital budgeting technique used to determine the length of time required to recoup the cost of an investment. The other options, residual income model, dividend discount model, and free cash flow to equity model, are all commonly used equity valuation models.

Which of the Following Is Not an Equity Valuation Model