Description
FIN 515 Week 4 DQ 1
Stock and Stock Valuation
What are the Legal Rights and Privileges of Common Stockholders?
Stock prices are the discounted value of future cash flows. For which type of company would the constant growth model be appropriate to value that company’s stock price?
Would a company that pays a common stock cash dividend be likely a more attractive investment during a relatively neutral stock market or during a rapidly advancing stock market? Why?Not all companies pay common stock cash dividends dividends. For a company that doesn’t pay a dividend, what model(s) would you recommend to value such company’s stock price?
What are the advantages of the Free Cash Flow Discounted Cash Flow (DCF) model in comparison to the Constant Growth Dividend Model?
How does one value a dividend-paying stock that is expected to have a supernormal growth rate for a few years and then is expected to have a constant growth rate?
How does one value preferred stock?
What are the three forms of the Efficient Market Hypothesis (EMH)? Please describe each one.
Why is the annual expense ratio typically much lower for index stock mutual funds than for actively managed stock mutual funds?
