MBA 520 Module Six Forecasting Model Questions
The questions that follow and the article Comparing the Accuracy and Explainability of Dividend, Free
Cash Flow, and Abnormal Earnings Equity Value Estimates will inform your completion of Milestone
Three. An understanding of the models in this assignment will assist you in hypothesizing the
incremental impact of a new investment project for the company. The understanding of these models
will contribute to your ability to look toward the future when considering the direction of an
organization. This activity is worth a total of 75 points. See the distribution of points listed before each
Prompt: Once you have read the article“Comparing the Accuracy and Explainability of Dividend, Free
Cash Flow, and Abnormal Earnings Equity Value Estimates” and Chapters 6 and 7 of your text, review
and complete the questions below. Use the article and your text to inform your responses to the
1. (20 points) For models 2, 2a, and 2b:
2A. What is the best way to minimize the weighted average cost of capital?
The very best alternatives possibilities to minimize the weighted average cost of capital
comprise, reducing the expenses involving a capital restructuring of its funds particularly
transitioning from debt to equity. By lowering the weighted average cost of capi...