I have a homework assignment that requires me to answer these following questions below. Here is my dilemma that I need help with. I am suppose to "Add major characteristic of each". Any suggestions what they are asking? I have asked my instructor, however, she is refusing to help. Textbook we are using is Fundamentals of Financial Management 13ed Brigham and Houston

1. What is a firm's intrinsic value? Its current stock price? Is the stock's "true" long-run value more closely related to its intrinsic value or to its current price?

2. When is a stock said to be an equilibrium? At any given time, would you guess that most stocks are in equilibrium as you defined it? Explain.

3. Suppose three honest individuals gave you their estimates of Stock X's intrinsic value. One person is your current roommate, the second person is a professional security analyst with an excellent reputation on Wall Street, and the third person is Company X's CFO. If the three estimates differed, in which one would you have the most confidence? Why?

4. Is it better for a firm's actual stock price in the market to be under, over, or equal to its intrinsic value? Would your answer be the same from the standpoints of stockholders in general and a CEO who is about to exercise a million dollars in options and then retire? Explain.