1.A control perspective is most consistent with which of the following valuation approaches?

A)   Free cash flow.

B)   Dividends.

C)   Price to enterprise value (P/Enterprise).

D)   Price to book value (P/B).

2.The ownership perspective implicit in the free cash flow to equity valuation approach is of:

A)   a minority position.

B)   control.

C)   a debt holder.

D)   a preferred stockholder.

3.The ownership perspective implicit in the dividend valuation approach is of:

A)   control.

B)   a common stockholder.

C)   a debt holder.

D)   a preferred stockholder.

答案和详解如下：

1.A control perspective is most consistent with which of the following valuation approaches?

A)   Free cash flow.

B)   Dividends.

C)   Price to enterprise value (P/Enterprise).

D)   Price to book value (P/B).

The correct answer was A)

Dividend policy can be changed by the buyer of a firm. Thus, the free cash flow perspective looks to the source of dividends in a position of control rather than directly at dividends. The P/Enterprise value and P/B approaches do not focus on cash flows.

2.The ownership perspective implicit in the free cash flow to equity valuation approach is of:

A)   a minority position.

B)   control.

C)   a debt holder.

D)   a preferred stockholder.

The correct answer was B)

Dividend policy can be changed by the buyer of a firm. Thus, the free cash flow perspective looks to the source of dividends in a position of control rather than directly at dividends.

3.The ownership perspective implicit in the dividend valuation approach is of:

A)   control.

B)   a common stockholder.

C)   a debt holder.

D)   a preferred stockholder.

The correct answer was B)

Dividends are most relevant to the stockholders who receive them and who have little control over their amount.