1) In what circumstances would you choose to use the free cash flow to equity model rather than a dividend discount model to value a firm?

2) In what circumstances is ti most important to use multistage dividend discount models rather than the constant growth model?

3) If a security is underpriced, then what is the relationship between its market capitalization rate and its expected rate of return?

4) A major component of the DuPont ROE is the Financial Leverage. You are conducting a trend analysis for a firm and see that the Financial Leverage has been consistently increasing over time.What does that tell you about the changing capital structure of the firm?