1. Describe the role of accounting numbers in corporate valuation.
2. What does sustainable earnings mean? What types of earnings are not sustainable?

3. Briefly describe what the process of valuation involves.

4. What are free cash flows? Describe the key features of the free cash flow approach to valuation.
5. Explain the difference between a company’s operating cash flow and its free cash flow.
6. What are abnormal earnings? Describe the key features of the abnormal earnings approach to valuation.
7. What is an earnings surprise? How does an earnings surprise impact the value of a firm's equity?