LOS c: Contrast the ownership perspective implicit in the FCFE approach to the ownership perspective implicit in the dividend discount approach.
Q1. The ownership perspective implicit in the dividend valuation approach is of:
A) control.
B) a preferred stockholder.
C) a common stockholder.
Q2. The ownership perspective implicit in the free cash flow to equity valuation approach is of:
A) control.
B) a preferred stockholder.
C) a minority position.
Q3. A control perspective is most consistent with which of the following valuation approaches?
A) Free cash flow (FCF).
B) Dividends.
C) Price to enterprise value. |