Question: True or False - The Dividend Growth Model is exclusively used to calculate the cost of equity of preferred stock. - To proxy for the

True or False

- The Dividend Growth Model is exclusively used to calculate the cost of equity of preferred stock.

- To proxy for the Cost of Debt (rd) you can divide Interest Expense by Total Liabilities of a firm.

- The Discounted Cash Flow model has a specific continuing/terminal value equation.

- The terminal value seldom accounts for a large portion of a firms total value.

- Multiples are of limited importance as long as the valuator has produced their Discounted Cash Flow analysis.

- In presenting the result of a valuation, it is recommended to present a value range of + or 2 percent around the point estimate.

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