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2 weeks ago
Which of the following is the appropriate way to calculate the price of a share of a given company using the free cash flow valuation model?

▸ P0 = PV(Future Free Cash Flow of Firm)/(Shares Outstanding0)

▸ P0 = [Div1/(rE - g)]/(Shares Outstanding0)

▸ P0 = (V0 + Cash0 - Debt0)/(Shares Outstanding0)

▸ P0 = Div1/(rE - g)
Textbook 
Fundamentals of Corporate Finance
Edition: 2nd
Authors:
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2 weeks ago
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P0 = (V0 + Cash0 - Debt0)/(Shares Outstanding0)
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