1. Free Cash Flow is one of the fundametal concepts in finance. Define what the term Free Cash Flow means (and include the formula in your response). (5 points) 2. In the context of Capital Asset Pricing Model (CAPM), all firms should have a target optimal capital structure. What does that mean? (4 points) 3. Beta is a term utilized in the CAPM. What does beta mean? There are both unlevered betas (also referred to as asset beta) and levered betas (also known as equity beta); what is the significance of each and what do they tell us? (6 points) 1. Free Cash Flow is one of the fundametal concepts in finance. Define what the term Free Cash Flow means (and include the formula in your response). (5 points) 2. In the context of Capital Asset Pricing Model (CAPM), all firms should have a target optimal capital structure. What does that mean? (4 points) 3. Beta is a term utilized in the CAPM. What does beta mean? There are both unlevered betas (also referred to as asset beta) and levered betas (also known as equity beta); what is the significance of each and what do they tell us? (6 points)