Question
Why is EV/EBITDA better than P/E for comparing firms with different capital structures?
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Answer
It is pre-interest and capital-structure neutral.
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Question
How does convertible preferred stock differ from standard preferred stock?
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Answer
It can be converted into common shares.
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Question
What is the FCFE formula starting from cash flow from operations?
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Answer
extCFO−extFCInv+extNetBorrowing.
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Question
Why can two analysts reach different intrinsic values for the same stock?
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Answer
Intrinsic value is an estimate based on assumptions.
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