The idea behind the __________ approach of valuing stocks is that the intrinsic value of the equity in a firm is equal to the present value of the net cash flows to shareholders that can be created by the company’s existing asset base plus the net present value of investments that will be made in the future.

(A) two-stage dividend growth model

(B) constant perpetual growth model

(C) free cash flow model

(D) constant dividend growth rate model

(E) retention ratio model