Valuing an entire company, an operating division of that company or its ownership shares involves three basic steps. These steps include all of the following except:

Multiple Choice

• Forecasting future amounts of a value-relevant attribute.

• Determining the discounted present value of the expected future amounts using an appropriate discount rate.

• Determining the risk or uncertainty associated with the forecasted future amounts.

• Determining the dividends the company will pay in the future based on the companys dividend policy and expected future earnings.