Question: Explain the horizon value when applied to FCF and dividends. Also show the equation used for each. Are stock values more affected by short-term cash

  1. Explain the horizon value when applied to FCF and dividends. Also show the equation used for each.

  2. Are stock values more affected by short-term cash flows or by long-term cash flows? Explain.

  3. Describe two reasons why managers might focus on quarterly earnings.

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