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Which of the following statements concerning stock valuation is most correct? a..The free cash flow method will result in a higher valuation that the dividend
Which of the following statements concerning stock valuation is most correct?
a..The free cash flow method will result in a higher valuation that the dividend valuation method, because cash flows are higher than dividends.
b. The free cash method can only be used if a company does not pay dividends
c. The dividend valuation approach is more accurate than the free cash flow approach.
d. When using the free cash flow method, interest-bearing debt must be subtracted from firm value to determine the stock value.
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