Discounted cash flows - Study guides, Class notes & Summaries

DISCOUNTED CASH FLOWS (BASIC) QUESTIONS AND ANSWERS, GRADED A+/ VERIFIED. 1. Walk me through a DCF. A DCF values a company based on the Present Value of its Cash Flows and the Present Value of its Terminal Value. First, you project out a company's financials using assumptions for revenue growth, expenses and Working Capital; then you get down to Free Cash Flow for each year, which you then sum up and discount to a Net Present Value, based on your discount rate - usually the Weighted ...

Discounted Cash Flow Model Exam Wallstreet Prep LATEST UPDATE 2024 / 2025 PASS A+ 1. three equity securities valuation methods: dividend discount model, com- prables model, discounted cash flow models 2. essense of DCF: using cash flows to value equity shares 3. earnings are not optimale in robust equity valuation: do not adequetely incor- porate investments and ROIC 4. ROIC: return on capital investments 5. investments include: operating and capital 6. instead of using earnin...

FIN3701 May/June Exam Portfolio 2024 ;100 % TRUSTED workings, explanations and solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)........... QUESTION 1 [20 marks] Rati Enterprises is considering investing in either of two mutually exclusive projects. Cash flows associated with the two independent investments are given below. The risk-free rate is 8% and the risk premium is 2%. Project A Year Cash flows Certainty equivalents 0 R 400 000 1.00 1 R 200...

Test Bank for CFIN7 7th Edition by Scott Besley, Eugene Brigham ISBN-13: 5150 Full Chapters test bank includes Multiple choice questions and True false Chapter 1. An Overview of Managerial Finance 1-1. What Is Finance? 1-1a. General Areas of Finance 1-1b. The Importance of Finance in Non-Finance Areas 1-2. Alternative Forms of business Organization 1-2a. Proprietorship 1-2b. Partnership 1-2c. Corpora...

BFIN 300 Final Review Latest Update Graded A+ Net Present Value (NPV) the sum of the present values of expected future cash flows from an investment, minus the cost of that investment. If NPV is negative you will reject the investment Payback Period Rule an investment is acceptable if its calculated payback period is less than some pre-specified number of years Discounted Payback Period the length of time required for an investment's discounted cash flows to equal its initial co...

Discounted Cash Flow Exam Questions With 100% Correct Answers What's the basic concept behind a Discounted Cash Flow analysis? - answerThe concept is that you value a company based on the present value of its Free Cash Flows far into the future. You divide the future into a "near future" period of 5-10 years and then calculate, project, discount, and add up those Free Cash Flows; and then there's also a "far future" period for everything beyond that, which you can't estimate as prec...

WGU C783 Exam (Latest 2024/ 2025 Update) Project Management| Questions and Verified Answers| 100% Correct| Grade A Q: Monitoring and Controlling Process group Answer: Monitoring and controlling consists of those processes that are performed to observe project execution, so that potential problems can be identified in a timely manner and corrective action can be taken, when necessary, to control the execution of the project Q: Project management process groups Answer: the pr...

Discounted Cash Flow Model Exam Questions with Verified Answers 1: What is the primary purpose of the Discounted Cash Flow (DCF) model?- correct answer - The primary purpose of the DCF model is to estimate the value of an investment based on its expected future cash flows, which are discounted to their present value. 2: What is the formula for calculating the present value of a future cash flow?- correct answer - The formula for calculating the present value (PV) of a future cash flow (C...

WGU C722 Project Management new update 2022-2023 exam study guide solution A Guide to Project Management Body of Knowledge (PMBOK Guide) - The project management standard developed by the Project Management Institute. Benefit measurement methods - A type of decision model that compares the benefits obtained from a variety of new project requests by evaluating them using the same criteria and comparing the results. Co-located - When team members work together at the same physical locat...

Discounted Cash Flows Exam Questions With Verified Solutions A DCF values a company based on: - answerThe present value of its cash flows and the present value of its terminal value. Walk me through a DCF - answerFirst, you project out the company's financials using assumptions for revenue growth, expenses and working capital. Then you get FCF for each year which you sum up and discount to a NPV based on your discount rate, usually the WACC. Then you determine the company's terminal val...