MY ADVENTIS FMC LEVEL 2 SG With Correct Solutions 2024

MY ADVENTIS FMC LEVEL 2 SG With Correct Solutions 2024 Two types of valuation - Answer -Relative and Intrinsic Relative Valuation - Answer -Refers to methods that compare the price of a company to the market value of similar assets Two Types of Relative Valuation - Answer -Comparable company analysis and Acquisition comparable analysis Comparable Company Analysis - Answer -Used to determine the value of a company by applying relevant multiples of peers to company's metrics. -Enterprise Value/EBITDA -Enterprise Value/Revenue -Equity Value/Earnings Acquisition comparables - Answer -represent comparable acquisitions that have taken place and been publicly announced. Differences of Relative Valuation - Answer -Multiples for acquisition comparable are typically greater than multiples for comparable companies because acquirers typically need to pay a premium to the current share price to gain control of the company Intrinsic Value - Answer -Value of the company through fundamental analysis without reference to its market value, instead looking to a company's ability to generate cash flow DCF analysis - Answer -The discounted cash flow analysis discounts all project future cash flow of a company to the present by using the concept of time value of money Unlevered Free Cash Flow projections - Answer -Represents the cash flow available to all stakeholders in the business (i.e. it is not affected by capital structure and, accordingly, does not include interest expense