Question 1. How would you use the present and future value techniques in preparing a financial plan for retirement? How would required rates of return affect your decision? Explain your reasoning.
Question 2. What is a loan amortization schedule? What type of loan and for how many years would you try to obtain one, if you were buying a house today? Explain your reasoning. What factors would impact your choice between two loans?
Question 3. What are the three key inputs to the valuation model? How would you determine the valuation of an asset, whether it is a company, a home or a car? How would the intrinsic value differ from the market value?
Question 4. Describe the free cash flow valuation model and explain how it differs from the dividend valuation models. What is the appeal of this model? Give an example of how you would use this model.