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Section 3: Valuation of Stocks What is Beta What is an efficient market? Explain two different ways of calculating rate of return. Explain when to

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Section 3: Valuation of Stocks What is Beta What is an efficient market? Explain two different ways of calculating rate of return. Explain when to use dividends valuation method and when to use free cash flow valuation method. 1. If the value of a stock is equal to the present value of the cash flows, why does a stock paying zero dividends have value? Explain

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