Which one of the following reasons best
explains why the valuation model you chose in question 17 is appropriate ?

Question

Which  one  of the following reasons best
explains why the valuation model you chose in  question 17 is appropriate ?

Answer

The company dividend information is not provided and residual income has
a negative value.

Answer

FCFE is negative and volatile and leverage is relatively high.

Answer

It is a takeover situation, therefore the FCFF model is easier to use.

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