Imagine Software is a growth stock that has never paid a dividend. Free cash flow is forecasted to be negative for the next five years because of Imagine's aggressive expansion plans. Restoration has always received an unqualified opinion from its auditors and is generally considered to have high-quality earnings. Which of the following models is most appropriate to value Restoration?

Select one:

a.

Free cash flow to equity model

b.

Residual income model

c.

Free cash flow to the firm model