Assume that you recently graduated and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firms clients is Michelle DellaTorre, a professional tennis player who has just come to the United States from Chile. DellaTorre is a highly ranked tennis player who would like to start a company to produce and market apparel she designs. She also expects to invest substantial amounts of money through Balik and Kiefer. DellaTorre is very bright, and she would like to understand in general terms what will happen to her money. Your boss has developed the following set of questions you must answer to explain the U.S. financial system to DellaTorre.

1. . What are free cash flows?

2.. How do free cash flows and the weighted average cost of capital interact to determine a firms value?

3. Explain the differences among dealer-broker networks, alternative trading systems, and registered stock exchanges.

4. Along what two dimensions can we classify trading procedures?

5. What are some different types of markets?

If you could can you explain is with an analogy for me so I can understand what it means and I can speak to it. Provide an example if possible.