If you want to value a firm but don't want to explicitly forecast its dividends,share repurchases,or its use of debt,what is the simplest model for you to use?
A)Discounted free cash flow model
B)Dividend discount model
C)Enterprise value model
D)Total payout model

Question

Quizplus · Accepted Answer

The discounted free cash flow model values a firm based on its free cash flows, which do not require explicit forecasts of dividends, share repurchases, or debt usage.

If You Want to Value a Firm but Don't Want