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In Contrast to the FCFE Approach, the Dividend Discount Model

Question 71

Multiple Choice

In contrast to the FCFE approach, the dividend discount model (DDM) approach values


A) cash flows that are available for distribution to shareholders.
B) the stream of cash flows that shareholders expect to receive through dividend payments.
C) cash flows that remain after payments to all lenders.
D) None of the above.

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