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This question is based on the following information: You are trying to estimate the intrinsic value of the shares of Flying High Ltd, a
This question is based on the following information: You are trying to estimate the intrinsic value of the shares of Flying High Ltd, a manufacturer of unmanned aerial vehicles, or drones. The company is headquartered in Melbourne, and sells its drones throughout Australia and New Zealand. It is a public company, but is not yet listed on the stock exchange. There are 20,000 shares outstanding. The firm pays an annual dividend. The most recent dividend was $2.41. Under what circumstances would you use the Free Cash Flow Discount Model to value this stock? O a EPS for the last year was $3.01, the dividend policy is to always pay 80% of the EPS as a dividend, and the reason you are valuing the stock is because you are thinking of taking over the firm O b. EPS for the last year was $3.01, the dividend policy is to always pay 80% of the EPS as a dividend, and the reason you are valuing the stock is because you are thinking of investing in the firm O c EPS for the last year was $24.70, but the dividend is always $2.41, irrespective of EPS, and the reason you are valuing the stock is because you are thinking of investing in the firm. Od EPS for the last year was $24.70, but the dividend is always $2.41, irrespective of EPS, and the reason you are valuing the stock is because you are thinking of taking over in the firm
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