Question
a. What are the relevant cash flows for valuing a stock using different valuation methods (Free Cash Flow to Equity and Dividend Discount Model)? b.
a. What are the relevant cash flows for valuing a stock using different valuation methods (Free Cash Flow to Equity and Dividend Discount Model)?
b. What are the different ways you can find cost of equity? Which is your preferred method?
c. When is a dividend discount model most suitable? When is it not suitable?
d. What would be the input to Excel Rate function if you are trying to find yearly dividend growth rate for a company which paid $2.5 as dividend exactly 4 years ago and has paid $3.5 today?
e. What is the difference between unsystematic and systematic risk according to the Capital Asset Pricing model?
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