Question: While the discounted dividend model values a companys stock based on its dividends, the corporate valuation model values a companys stock based on the companys:

While the discounted dividend model values a companys stock based on its dividends, the corporate valuation model values a companys stock based on the companys:

options:

Free cash flow

Assets

Net income

Book value of equity

Part B

Because of flotation costs, new common stock is more expensive for firms than reinvested profit?

options:

True
False

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