Description
FIN 350 Week 6 Module 6 Practice Problems
Complete the following problems from chapter 7 in the textbook:
- P7-2
- P7-8
- P7-10
- P7-14
- P7-17
- P7-19
Follow these instructions for completing and submitting your assignment:
1. Do all work in Excel. Do not submit Word files or *.pdf files.
2. Submit a single spreadsheet file for this assignment. Do not submit multiple files.
3. Place each problem on a separate spreadsheet tab.
4. Label all inputs and outputs and highlight your final answer.
5. Follow the directions in “Guidelines for Developing Spreadsheets.
FIN 350 Week 6 Module 6 Discussion Question 1
Several stock valuation models were described in the chapter, including zero-growth, constant growth, variable growth, free cash flow, book value, and P/E multiple models. Which of these do you believe would generate the most accurate value estimates for most firms? Explain your choice.
FIN 350 Module 6 Discussion Question 2
Read the Focus on Ethics box (“Psst! Have You Heard Any Good Quarterly Earnings Forecasts Lately?”). Explain what quarterly earnings guidance is, and what purpose it is supposed to serve. If you were a corporate CEO, would you discontinue this practice? Why or why not?