Equity Investments Q229

229With respect to FCFE model, which of the following statements is most accurate?

A
FCFE model can only be used if a stock pays a dividend.
B
FCFE model cannot be used if a stock is not expected to pay a dividend.
C
FCFE model can be used if a stock pays a dividend, is expected to pay a dividend, or is not expected to pay a dividend.

Option : C
Explanation : FCFE model can be used if a stock pays a dividend, is expected to pay a dividend, or is not expected to pay a dividend.

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