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QUESTION 14 Which of the following stock valuation methods would not be appropriate for a company not currently paying a dividend? O a. Constand Dividend
QUESTION 14 Which of the following stock valuation methods would not be appropriate for a company not currently paying a dividend? O a. Constand Dividend Stream method O b. Market Multiples Approach O c. Free Cash Flow Approach O d. Figure out the price of the stock when the company does begin to pay a dividend and discount it back. QUESTION 15 Which of the following "market multiples" is the most popularly used ratio in the Market Multiples Approach to stock valuation? O a. Price/Sales Ratio (P/S) O b. Price/Earnings Ratio (P/E) c. Price/EBIT O d. Price/Book Ratio (P/B) QUESTION 16 An average of the returns required by equity holders and debt holders weighted by the company's relative usage of each is the definition of O a. Discount Rate O b. Market Return c. Required Return O d. Weighted Average Cost of Capital (WACC)
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