Which of the Following Is the Appropriate Way to Calculate

Multiple Choice

Which of the following is the appropriate way to calculate the price of a share of a given company using the free cash flow valuation model?

A) P₀ = Div₁/(r_E - g)
B) P₀ = PV(Future Free Cash Flow of Firm) / (Shares Outstanding₀)
C) P₀ = [Div₁ / (r_E - g) ] / (Shares Outstanding₀)
D) P₀ = (V₀ + Cash₀ - Debt₀) / (Shares Outstanding₀)