Your boss has asked you to estimate the intrinsic value of the equity for Google, which does not currently pay any dividends You are going to use an income approach and are trying to choose between the free cash flow to equity (FCFE) approach and the dividend discount model (DDM) approach Which would be more appropriate in this instance Why What concerns would you have in applying either of these valuation approaches to a company such as this

Question: Your boss has asked you to estimate the intrinsic value of the equity for Google, which does not currently pay any dividends. You are going

Your boss has asked you to estimate the intrinsic value of the equity for Google, which does not currently pay any dividends. You are going to use an income approach and are trying to choose between the to equity (FCFE) approach and the discount model (DDM) approach. Which would be more appropriate in this instance? Why? What concerns would you have in applying either of these valuation approaches to a company such as this?

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