question d & e

Web Extension 7A provides the derivations of the constant growth formulas for the value perpetual preferred stock valuation model (V). operations (V) and the intrinsic stock price (P). It also shows the derivation of the of ONS -7-1) Define each of the following terms: a. Proxy: proxy fight; preemptive right; classified stock; founders' shares b. Free cash flow valuation model; value of operations, nonoperating assets c. Constant growth model; horizon date and horizon value d. Multistage valuation model e. Estimated value (P); market price (P) f. Required rate of return, r,; expected rate of return, f; actual, or realized, rate of return, i g. Capital gains yield; dividend yield; expected total return h. Preferred stock