Which of the following statements least accurately explains the relationship between the residual income model...
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Finance
Which of the following statements least accurately explains the relationship between the residual income model (RI), the dividend discount model (DDM), and the free cash flow to equity model (FCFE)? 1) Rl models use an equity value from the balance sheet plus the present value of expected future residual income. 2) FCFE models discount historical cash flows 3) DDM forecast future cash flows 4) All the models discount future cash flows or income at the required rate of returns
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