Question
If a companys free cash flows are expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT?
If a companys free cash flows are expected to grow at a constant rate of 5% a year, which of the following statements is CORRECT? The stock is in equilibrium.
| The companys stock's dividend yield is 5%. | ||
| The value of operations is expected to decline in the future. | ||
| The company's WACC must be equal to or less than 5%. | ||
| The companys value of operations one year from now is expected to be 5% above the current price. | ||
| The expected return on the companys stock is 5% a year |
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Advances In Financial Machine Learning
Authors: Marcos Lopez De Prado
1st Edition
1119482089, 978-1119482086
