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Topic 1: Free-Cash-Flows-Based Valuation Approaches Explain the theory behind the free cash ows valuation approaches. Why are free cash ows value-relevant to common equity shareholders

Topic 1: Free-Cash-Flows-Based Valuation Approaches

Explain the theory behind the free cash ows valuation approaches. Why are free cash ows value-relevant to common equity shareholders when they are not cash ows to those shareholders but rather are cash ows into the rm?

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