The Free Cash Flow Model Is Most Helpful for Firms

Multiple Choice

The free cash flow model is most helpful for firms:

A) that have similar investment opportunities as other firms in their industry.
B) that pay steady dividends and have excess cash.
C) that are financially sound and thus pay constant,high dividends.
D) with external financing needs that are not paying dividends.
E) that are projected to grow at a constant,steady pace while increasing their dividends.