Edward informs Greg that the private equity fund is considering buying a controlling interest in a closely held

company, H-Tron (HTR), which pays infrequent dividends that are well below the free cash flow from equity.

HTR has healthy cash flows with significant growth potential and holds patents on a key innovation in

electronics technology. Edward believes the value of these patents is not fully reflected in HTR's balance sheet.

Based on the information Edward provides to Greg about HTR, the most suitable method for Greg to use in

determining the fair value of common equity is to discount future:

A) Free cash flow to equity

B) forecasted sales

C) forecasted dividends