Question: 1.Why would you expect asset-based valuation to be more difficult to apply to a technology firm such as Microsoft compared to a forest products company
1.Why would you expect asset-based valuation to be more difficult to apply to a technology firm such as Microsoft compared to a forest products company like Weyerhauuser?
2.Investors receive dividends as payoffs for investing in equity shares. Thus, the value of the shares should be calculated by discounting expected dividends. True or false? Explain.
3.Should a firm that has higher free cash flows have a higher value?
4.What explains the difference between cash flow from operations and earnings?
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