Discussion Post
• There are a number of approaches may be used to estimate the market risk premium. Identify three of them, discuss and justify them in detailed.
• Discuss in detailed the importance of capital budget and its influence to a company's growth and expansion. Please justify your response.
• What is the difference between "market multiple" and "entity multiple." Discuss in detailed.
• Explain the FOUR steps to eliminate the financing deficit or surplus. Justify your response.
• Discuss the SIX ways in which a manager's behavior might harm a firm's intrinsic value. Justify your response.
• If an investor aversion to risk increased, would the risk premium on a high-beta stock increased by more or less than that on a low beta-stock? Discuss and justify your response.
• Why do a volatile stock price necessarily imply irrational pricing? Justify your response.
• Explain how to use the Free Cash Flow [FCF] valuation model to find the price per share of a common equity.
• Explain why both put and call options are worth more if the stock return Standard Deviation is higher, but put and call options are affected oppositely by the stock price.
• Option pricing is used in FOUR different ways...identify them and discuss any TWO in detailed and justify your response.
• Discuss three pros and cons each for a Co. going public.
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.