The rationale for using expected free cash flow in valuation

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In your own words, no plagiarism, provide a 200-300 word explanation for the interrelated questions involved in business financial statements:

1. Provide the rationale for using expected free cash flow in valuation.

2. What three elements are needed to value a resource when using cash flows? Explain. Why are these the case?

3. When should an analyst use nominal cash flows and when should an analyst use real cash flows? Why should an analyst use these different flows at these times?

4. Starting with free cash flows from operations, plain speaking discuss how an analyst would measure free cash flows to common equity shareholders.

Reference no: EM131461158

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