Session 10: Cash Flows to the firm and Equity & first steps on growth

In this session, we began by tying up loose ends on getting from earnings to cash flows, starting with what should go into net capital expenditures and change in working capital, before starting on our discussion of free cash flows to equity. We then started on our discussion of growth, with a specific focus on why historical growth rates can be sensitive to time periods used, averaging approach and the metric of choice (revenue, EBITDA, net income, EPS). Start of the class test: https://www.stern.nyu.edu/~adamodar/p... Slides: https://www.stern.nyu.edu/~adamodar/p... Post class test: https://www.stern.nyu.edu/~adamodar/p... Post class test solution: https://www.stern.nyu.edu/~adamodar/p...