An equity analyst has been asked to estimate the intrinsic value of the common stock of Omega Corporation, a leading manufacturer of automobile seats. Omega is in a mature industry,

and both its earnings and dividends are expected to grow at a rate of $3$ per cent annually. The growth rate of earnings is steady. Which of the following is most likely to be the best model

for determining the intrinsic value of an Omega share?

A$.$ Preferred stock valuation

B$.$ A single state equity valuation model. For example, a free cash flow to equity model

C$.$ Multistage dividend to discount model