The most relevant form of growth for valuing a firm's common stock is internal growth.

Question

Quizplus · Accepted Answer

Internal growth is the most relevant form of growth for valuing a firm's common stock because it is the growth that is generated from within the firm itself, rather than from external factors such as acquisitions or mergers. Internal growth is typically more sustainable and predictable than external growth, and it is therefore more likely to be reflected in the firm's future cash flows.

The Most Relevant Form of Growth for Valuing a Firm's