obe Home Library Home This question is based on the following information: Students You are trying...

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obe Home Library Home This question is based on the following information: Students You are trying to estimate the intrinsic value of the shares of Flying High Ltd, a manufacturer of unmanned aerial vehicles, or drones. The company is headquartered in Melbourne, and sells its drones throughout Australia and New Zealand. It is a public company, but is not yet listed on the stock exchange. There are 20,000 shares outstanding. The firm pays an annual dividend. The most recent dividend was $2.41. Under what circumstances would you use the Dividend Discount Model to value this stock? O a. The dividend is always $2.41, irrespective of EPS, and the reason you are valuing the stock is because you are thinking of investing in the firm. O b. The dividend is always $2.41, irrespective of EPS, and the reason you are valuing the stock is because you are thinking of taking over in the firm. O c. EPS for the last year was $3.01, the dividend policy is to always pay 80% of the EPS as a dividend, and the reason you are valuing the stock is because you are thinking of investing in the firm. O d. EPS for the last year was $3.01, the dividend policy is to always pay 80% of the EPS as a dividend, and the reason you are valuing the stock is because you are thinking of taking over the firm. MacBook Air obe Home Library Home This question is based on the following information: Students You are trying to estimate the intrinsic value of the shares of Flying High Ltd, a manufacturer of unmanned aerial vehicles, or drones. The company is headquartered in Melbourne, and sells its drones throughout Australia and New Zealand. It is a public company, but is not yet listed on the stock exchange. There are 20,000 shares outstanding. The firm pays an annual dividend. The most recent dividend was $2.41. Under what circumstances would you use the Dividend Discount Model to value this stock? O a. The dividend is always $2.41, irrespective of EPS, and the reason you are valuing the stock is because you are thinking of investing in the firm. O b. The dividend is always $2.41, irrespective of EPS, and the reason you are valuing the stock is because you are thinking of taking over in the firm. O c. EPS for the last year was $3.01, the dividend policy is to always pay 80% of the EPS as a dividend, and the reason you are valuing the stock is because you are thinking of investing in the firm. O d. EPS for the last year was $3.01, the dividend policy is to always pay 80% of the EPS as a dividend, and the reason you are valuing the stock is because you are thinking of taking over the firm. MacBook Air

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