Solution-Discounted cash flow model

Discounted cash flow model

Reference no: EM131152824

You have been asked to perform a stock valuation prior to the annual shareholders meeting next week. The two models you've selected to value the firm are 1) the dividend discount model and 2) the discounted cash flow model. Explain why the estimates from the two valuation methods differ. Address the assumptions implicit in the models themselves as well as those you made during the valuation process. Also, explain why these prepared estimates may differ from the actual stick price today, or any given day.

Reference no: EM131152824

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Discounted cash flow model

Reference no: EM131152824

Reference no: EM131152824

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