Question

A. How do free cash flows and the WACC interact to determine a firm’s value?

B.What are some economic conditions that affect cost of money?

C. What are the differences between market orders and limit orders?

Answer 1

Answer =1)
Free Cash Flows are divided by the WACC to determine the any compaby's Value.
Value = FCF1 / (1 + Wacc) + FCF2 / (1+WACC)^2
Answer = 2)
Any currency of the country is depend on there economic condittion,
If there is economic condittion is good ad established than the value of the currency is Good
If the economic condittion is not in a good possittion than the value of the currency is not good
Condittions:
Inflation : This is a major condittion for determining the currency value of any contry
Political Stability: If the country is poilitically established than the currency will be in good condititon
Economic Condittion: Economic condittion and the growth rate of any country is also key factor for determining the value of currency
Answer = 3)
Market order means the order will be executed at the market rate running.
This order will execute immediate at the market rate.
And limit order will execute only in the condittion market rate will reach at the limit rate.
So it means limit order will execute only when the market rate is equal to limit order rate