If you want to value a firm but do not want to explicitly forecast its dividends, what is the simplest model for you to use?

a

the discounted free cash flow model

b

the dividend-discount model

c

the enterprise value model

d

None of the above

2. Which one of the following applies to a zero-growth stock?

a		The stock price is constant over time.
b		The dividend will increase over time.
c		The growth rate equals 1.0.
d		In the differential growth formula, g2, is the negative of g1.