1. As we have learned so far into the course that forecasting cash flows into the foreseeable future poses a unique challenge since most enterprises are expected to stay in business for many years. As valuation experts, what we can do in order to come up with a reasonably accurate valuation of a business that is expected to continue for long time? What are the different alternative methodologies that can be applied to meet this challenge?

2.One of the bigger political "footballs" of early 2005 concerned revising Social Security. Projections abounded -- that nobody refuted -- that the system would start being in net cash outflow by 2017 (give or take a year or two) and go broke by 2042 (again, give or take a year or two).

Politics may have tabled the topic for a while, but it is useful analytically. Let me pose two questions.

First, how can we analyze the Social Security situation as a valuation problem?

Second, "Stocks are too risky for Social Security" has been one of the arguments against the proposed private accounts. Do you agree or disagree?