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The Free Cash Flow model has the following advantage over the Dividend Growth model: o It can be applied to companies with variable growth in

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The Free Cash Flow model has the following advantage over the Dividend Growth model: o It can be applied to companies with variable growth in the initial years that eventually settle down to a fixed rate of growth for the long term. o It can be applied even if growth rates are unknown. O In the case of variable growth, it does not require the calculation of any horizon value. It does not require any forecasting. o It can be applied to divisions of companies

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