Discuss the various common stock valuation models

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Reference no: EM132009076

1. Identify and discuss the various common stock valuation models. Also discuss the difference between common and preferred stock, be specific and provide examples when the firm's cash flows are insufficient to fund all stated dividends.

2. A firm is considering a project that will cost $1,500,000. This project will yield annual cash flows of $400,000 for the next 5 years. what is the project's IRR? If the firm's required rate is 11%, should they do this project?

Reference no: EM132009076

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