The stock valuation approach

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Reference no: EM1347733

1. The stock valuation approach uses discounted cash flows concepts to calculate the theoretical value of a stock. The most popular academic approach is the dividend growth model.

If a stock does not pay a dividend, this model cannot be used. What might be an alternative method or approach to valuing a stock if it does not pay a dividend? You may find doing some research might be helpful to answer this question

2. So assume you are the treasurer and your boss, the CFO, tells you to invest in a highly risky instrument which you think can endanger the company if it goes bad. What would you do and why?

Reference no: EM1347733

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