As a new analyst for a large brokerage firm, you are anxious to demonstrate the skills you learned in your MBA program and prove that you are worth your attractive salary. Your first assignment is to analyze the stock of the Columbia Sportswear Corporation. Your boss recommends determining prices based on both the dividend-discount model and discounted free cash flow valuation methods. Columbia has no debt and an 8% equity cost of capital. You are ready for the challenge, but also are a little concerned because your finance professor told you that these two methods can result in widely differing estimates when applied to real data. You are really hoping that the two methods will reach similar prices.
Q7！
