The corporate valuation model is a valuation based on

a. the firm's capital gains yield.

b. the firm's future free cash flows.

c. the firm's preferred stock value.

d. the firm's expected retained earnings.

e. the firm's estimated revenue growth rate.

What is one key difference of an analyst using the corporate valuation model versus the discounted dividends model?

a. Analysts generally use both the dividend and the corporate model to value mature firms and neither of these models are appropriate when valuing firms that do not pay dividends.

b. Analysts generally use only the dividend model to value mature firms and only the corporate model when valuing firms that do not pay dividends.

c. Analysts generally use both the dividend and the corporate model to value mature firms and only the corporate model when valuing firms that do not pay dividends.

d. Analysts generally use the corporate model to value mature firms and only the dividend model when valuing firms that do not pay dividends.

e. The corporate valuation model is ineffective when valuing a firm that pays dividends and the dividend model is ineffective when valuing a firm that does not pay dividends.