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1 . Explain how companies can be valued using the dividend discount model. 2 . Discuss when it is appropriate to value a company using
Explain how companies can be valued using the dividend discount model.
Discuss when it is appropriate to value a company using a fair market value model.
Explain the relationship between the required return and expected growth rates in the dividend discount model.
Define an undervalued firm in the context of its intrinsic value.
Discuss the critical input variables a financial analyst must use in order to estimate a companys sustainable growth rate.
Describe the difference between using dividends and free cash flows in discount valuation models.
Identify the main reason that the H Model is used to value a firm.
Describe how an investor can value a firm with substantial growth for a few years followed by more normal growth afterwards.
Explain the concept of free cash flow to equity.
Compare and contrast PE PS PCF and PB ratios.
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