Write out the equation for free cash flows, and explain it.
Why might someone use the corporate valuation model even for
companies that have a history of paying dividends?
What steps are taken to find a stock price as based on the firm’s total
value?
Why might the calculated intrinsic stock value differ from the
stock’s current market price? Which would be “correct,” and what
does “correct” mean?
For a stock to be in equilibrium, what two conditions must hold?
If a stock is not in equilibrium, explain how financial markets adjust
to bring it into equilibrium
