Hello I need help with this home work, wanted to do it by my self. .but no time I have an emergency, anybody ready to help? Here is the question. I need just three paragraph each should have not less than six lines with citation and references. Please no Internet search, use textbooks or per review article.

Why do Investors and Companies Cares about Intrinsic Value?

The intrinsic value of a firm is determined by the size, timing, and the risk of its expected future free cash flows (FCF). There are two models used to estimate intrinsic values: discounted dividend model and the corporate valuation model.

The discounted cash flow (or DCF) approach describes a method of valuing a project, company, or asset using the concepts of the time value of money. All future cash flows are estimated and discounted to give their present values. The discount rate used is generally the appropriate cost of capital and may incorporate judgments of the uncertainty (riskiness) of the future cash flows.

Corporate valuation model - involves estimating the worth or price of a company, one of its operating units, or its ownership shares. There are many reasons for the valuation: the purchase or sale of the business, mergers and acquisitions, buy-back agreements, expanding the credit line, or tax matters.