100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
DCF Valuation Modeling UPDATED Actual Exam Questions and CORRECT Answers $9.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. DCF Valuation Modeling
  4.  
  5. DCF Valuation Modeling

Exam (elaborations)

DCF Valuation Modeling UPDATED Actual Exam Questions and CORRECT Answers
 0 purchase
  • Course
  • DCF Valuation Modeling
  • Institution
  • DCF Valuation Modeling

DCF Valuation Modeling UPDATED Actual Exam Questions and CORRECT Answers What are two benefits of making a compacted DCF model - CORRECT ANSWER- 1. Helps us learn the main features of a DCF model 2. Helps in a situation where we need a quick analysis What are two important dates in a DCF - ...

[Show more]

Preview 2 out of 14  pages

Document information

  • October 3, 2024
  • 14
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

  • DCF Valuation Modeling
  • DCF Valuation Modeling

Seller

avatar-seller
MGRADES

Reviews received

Content preview

DCF Valuation Modeling UPDATED Actual
Exam Questions and CORRECT Answers
What are two benefits of making a compacted DCF model - CORRECT ANSWER✔✔- 1.
Helps us learn the main features of a DCF model
2. Helps in a situation where we need a quick analysis


What are two important dates in a DCF - CORRECT ANSWER✔✔- 1. Timing of the
cashflows
2. Date of Valuation


The time value of money is also called the _______ - CORRECT ANSWER✔✔- The time
quantity of money


What is the simplified formula to discount the cashflows - CORRECT ANSWER✔✔-
Unlevered Free Cash Flow (UFCF)/ Weighted Average Cost of Capital (WACC)


What are the three types of valuation techniques? - CORRECT ANSWER✔✔- Discounted
Cashflow Analysis
Comparable Trading Analysis
President Transaction analysis


Define Unlevered Free Cashflow - CORRECT ANSWER✔✔- Cash flow available to all
capital providers


Define Weighted Average Cost of Capital - CORRECT ANSWER✔✔- The cost of capital
from all capital providers


What is the Enterprise Value in a DCF using Free Cashflows - CORRECT ANSWER✔✔-
Enterprise value = PV of UFCF/WACC


How long into the future should we forecast in a DCF? - CORRECT ANSWER✔✔- In
perpetuity (This is a common interview question)

, What are the two parts of a DCF? - CORRECT ANSWER✔✔- 1. Discrete Forecast
2. Terminal Value


What is a terminal value of a firm? - CORRECT ANSWER✔✔-



When is the start and end of the discrete forecast? - CORRECT ANSWER✔✔- It starts when
the company is growing faster than the overall economy and ends when the company grows
at the same rate of the economy


When is the start and end of a Terminal Value forecast? - CORRECT ANSWER✔✔- The
Terminal value forecast starts when the company experiences the same amount of growth as
the overall economy and then continues forever (Using a growing perpetuity formula)


Perpetuity Growth formula - CORRECT ANSWER✔✔- PV1=CF2/(R-G)


PV=Present Value of cashflow
CF=Cashflow of the next year
R= Required Return
G=Growth Rate


What does Enterprise Value represent? - CORRECT ANSWER✔✔- Our view of the
companies value


Equity Value formula - CORRECT ANSWER✔✔- Equity Value = Enterprise Value - Net
Debt


What is Net Debt formula? - CORRECT ANSWER✔✔- Total Debt - Cash = Net Debt



What if the formula for Equity Value per Share? - CORRECT ANSWER✔✔- Equity
Value/Shares Outstanding = Equity Value per Share

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller MGRADES. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $9.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67479 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$9.49
  • (0)
Add to cart
Added