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Discounted Cash Flow Model Exam Wallstreet prep –[Update] Questions Answered
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Discounted Cash Flow Model Exam Wallstreet prep –[Update] 20 Questions Answered
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Review: DCF Modeling ExamQuestion 1
The next two questions use the data below. The data will be repeated on the next question:
You have been tasked with building a stand-alone DCF valuation for Milner Beverages, a publicly traded company, using the
unlevered two-stage approach. You calculate the following:
$ in millions
2017 018 2019 2020 2021 2022 2023
Unlevered free cash
flow 110.0 120.0 150.0 170.0 200.0 250.0 280.0
In addition, you calculate the following
WACC = 8.00%
Perpetuity growth rate (annual growth rate of unlevered free cashlows after 2023) = 3.00%
Calculate enterprise value at the beginning of 2017 assuming all cashf ows occur at year-end. Use whole numbers (i.e. 1
yearexactly equals 1 period when calculating returns and discounting
$4,173.30
$4,271.40
$4,540.60
$6,505.80
$6,673.80
, Question 2
This question uses the same data as the previous question, shown below
You have been tasked with building a stand-alone DCF valuation for Miner beaverages, a publicly traded company, using the unlevered two-
stage approach. You calculate the following:
In addition, you calculate the following:
WACC = 8.00%
Perpetuity growth rate (annual growth rate of unlevered free cash flows after 2023) = 3.00%
,
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