For the period 2010 through 2014, the Morgan Stanley teams 2010 report on eBay forecasted that free

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For the period 2010 through 2014, the Morgan Stanley team’s 2010 report on eBay forecasted that free cash flow would on average grow by 5.7 percent. Free cash flow actually grew by an average growth rate of 16.7 percent during this period. Discuss the nature of this forecast error from a behavioral perspective.

Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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