In your own words, no plagiarism, provide a 200-300 word explanation for the related 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?
3. When should an analyst use nominal cash flows and when should an analyst use real cash flows?
4. Starting with free cash flows from operations, discuss how an analyst would measure free cash flows to common equity shareholders.