Question: 1. State and explain the major argument for using the Treasury Bill return, and the major argument for using the Treasury Bond return, as the

1. State and explain the major argument for using the Treasury Bill return, and the major argument for using the Treasury Bond return, as the risk-free rate for calculating the cost of equity with the Capital Asset Pricing Model.

2. List and explain three different major strengths of the Discounted Free Cash Flows methods of Stock Valuation compared to the Comparables methods of stock Valuation.

3. List and explain three different major weaknesses of the Discounted Free Cash Flows methods of Stock Valuation compared to the Comparables methods of stock Valuation.

4. List and explain three different major characteristics of companies for which it is not appropriate to use the Discounted Free Cash Flows methods of Stock Valuation.

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