Evaluate the likely impact on a firms valuation

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Reference no: EM131191141

Discussion 1

• 4"Free Cash-Flow Valuations" Please respond to the following:

• Create an argument that use of the present value free cash-flow method has a more beneficial economic meaning than earnings-based methods. Provide support for your argument.

• Assess the challenges related to using the present value of the free cash-flow valuation method in practice, suggesting how each of these challenges may be overcome. Provide support for your rationale.

Discussion 2

"Negative Cash Flow" Please respond to the following:

• Assess how the free cash-flow method can be used when a company is profitable yet the cash-flow values are expected to be negative over the next five years, indicating the likely impact on the valuation. Provide support for your rationale.

• Assess which cash-flow variables are the most sensitive to change and the likely impact on a firm's valuation. Provide support for your answer.

Discussion 3

"Earnings-Based Valuation" Please respond to the following:

• Create an argument supporting that using the earnings-based valuation method yields the most accurate results. Provide support for your argument.

• Assess the challenges related to using the earnings-based valuation method in practice, suggesting how each of these challenges may be overcome. Provide support for your rationale.

Discussion 4

"Accounting Methods" Please respond to the following:

• Evaluate the likely impact on a firm's valuation when using U.S. GAAP versus IFRS accounting methods, indicating which accounting standards you believe may yield a more favorable result. Provide support for your position.

• Determine how a firm's valuation using the earnings-based valuation method would be impacted when using aggressive versus conservative accounting. Provide evidence supporting your conclusion.

Reference no: EM131191141

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