Please be sure to read each question carefully. Each question is worth 25 points. Please make sure that you answer each question with as much detail as possible. You must use other sources to back up your responses (internet, books, journals, etc.). Please keep in mind that I would like to see graphs and equations where possible.

Please put your responses on a word document with 12 point font and double spacing. You may upload your exam file after you are done. Be sure to name the file correctly (i.e., name, topic, class).

Questions:
1. Please discuss & explain how to estimate the intrinsic value of a company using the present value of dividends model (please be thorough in your discussion; be sure to discuss how estimate g (the growth rate) and k (the required rate of return). Please provide an example with numerical values.(3 and half pages)

2.Please discuss & explain how to estimate the intrinsic value of a company using the free cash flow to the firm (FCFF) model by Damodaran ((please be thorough in your discussion; be sure to discuss how estimate g (the growth rate) and WACC (the weighted average cost of capital)). Please provide an example with numerical values.. Be sure to discuss the WACC and the measure of free Cash flows. ( 3 & half pages)

3. What are the differences between question 1 & 2? That is, what are the differences and similarities between the dividend discount model and free cash flow to the firm model? ( 2 pages)

4. Please discuss the P/E ratio approach for deriving the intrinsic value of a company . ( 3 pages)