True or False: Write T if the statement is true and accurate, otherwise indicate F if you think the statement is false. Further justify your answer on each of the questions. 8 1. The free cash flow valuation model is based on the same principle as the P/E valuation approach; that is, the value of a share of stock is the present value of future cash flows. 2. Preferred stock is a special form of stock having a fixed periodic dividend that must be paid prior to payment of any interest to outstanding bonds. 3. A common stockholder has no guarantee of receiving any cash inflows but receives what is left after all other claims on the firm's income and assets have been satisfied. 4. Investors purchase a stock when they believe that it is undervalued and sell when they feel that it is overvalued. 5. In common stock valuation, any action taken by the financial manager that increases risk will also increase the required return.

D6) Finance How would you use cash flow discount method and comparable method (aka relative value method) to estimate the intrinsic value of these two stocks? Discuss the pros and cons of the two methods. Use Macy and Nordstorm company as an example.

"The dividend discount model is used to find the price of a stock based on the expected dividends received by the shareholder and the discount rate.  Therefore, all else constant, the price of a share of stock will increase if the discount rate decreases." A) True B) False

1. Choose the best definition for a Stock? A. Being a creditor to a company B. Robin Hood C. Ownership shares of a company D. Voting shares in a company E. Ownership shares of a public company   2. When investing in stocks, there are two ways in which you can have a positive return. What are the components of this return called? A. Dividends and Capital Loss B. Robin Hood C. Coupon and Capital Gains D. Coupon and Capital Loss E. Dividends and Capital Gains

i need the answer quickly

According to the basic Dividend Discount model, the value an investor should assign to a share of stock is dependent on the length of time he or she plans to hold the stock.  Is the above statement True or False? Please Explain.

1. How does the binomial model account of volatility in the stock?

. The cash flow of a long stock and long put strategy is equal to the cash flow from a long call strategy. True or False   can i also get some explantation please?

A share of stock is worth the present value of all the cash flows an investor in said share of stock expects to receive.  Group of answer choices True False

(please correct answer and question information)