I’m studying and need help with a Finance question to help me learn.
- Choose one question:
- What is the free cash flow (FCF)? What are the uses of the FCF?
- What is the weighted average cost of capital? What factors affect the WACC?
- How the FCF and WACC are used to find the value of a firm/stock?
- What is the difference between the following two discounted cash flow (DCF) valuation models: free cash flow to the firm (FCFF) and dividend growth (Gordon) model?
- Choose one question:
- What is the terminal value (TV)? How is it used in corporate/stock valuation?
- What is a “value stock”? What is a “growth stock”?
- How could a firm with negative FCF have a positive value? What are the investors’ future expectations from such a firm?
- What are the three factors, explained in The Economist’s article, shared by Netflix, Uber, and Tesla, which help the firms remain afloat while using more than $1bn of FCF a year? Explain briefly.
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