One of the major decisions made by management is the dividend decision. For the two valuation models, Free Cash Flows to Equity and Residual Income describe how the dividend decision will impact or not impact, the estimate of the intrinsic value of the stock from each model? Provide reasons in support of your answer.

Answer rating: 100% (QA)

The Free Cash Flows to Equity FCFE and Residual Income RI models do not directly account for the div... View the full answer