The free cash flow valuation model is based on the same principle as dividend valuation models; that is, the value of a share of stock is the present value of future cash flows. True False QUESTION 11 The Oxford Heating Company has been very successful in the past four years. Over these years, it paid common stock dividend of $4 in the first year, $4.20 in the second year, $4.41 in the third year, and its most recent dividend was $4.63. The company wishes to continue this dividend growth indefinitely. What is the value of the company's stock if the required rate of return is 12 percent? [a] Answer should have a dollar sign and two decimals. e.g. $23.45 QUESTION 12 The amount of money that would have to be invested today at a given interest rate over a specified period in order to equal a future amount is called A. future value