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08.2 In this chapter, we examined nine stock Zero-growth DVM . Constant-growth DVM Variable-growth DVM . Free cash flow to equity approach Expected return (IRR)

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08.2 In this chapter, we examined nine stock Zero-growth DVM . Constant-growth DVM Variable-growth DVM . Free cash flow to equity approach Expected return (IRR) approach . P/E approach .Price-to-cash-flow ratio Price-to-sales ratio . Price-to-book-value ratio Which one (or more) of these procedures would be appropriare value on: 1. A growth stock that pays little or nothing in dividends 2. The S&P 500? 3. A relatively new co 4. A large, mature, dividend-paying company? 5. A preferred stock that pays a fixed dividend? 6. A company that has a large amount of depreciation and amortization? a. when trying to put a b. Of the nine procedures listed above, which three do you think are the best? Explain. c. If you had to choose just one procedure to use in practice, which would it be? Ex plain. (Note: Confine your selection to the list above.)

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