Price discounting - Study guides, Class notes & Summaries

What are the 3 major valuation methodologies? - Answer-Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis. Public Comps and Precedent Transactions are examples of relative valuations and DCF is an example of Intrinsic Valuation Rank the 3 valuation methodologies from highest to lowest expected value. - Answer-There is no ranking that will always hold. In general, precedent transactions will be higher than comparable companies due to the control premium built int...

CFIN 5 LATEST VERSION WITH REAL EXAM QUESTIONS GRADED A+ Which of the following statements about bonds is always true? a. a bond's yield to maturity is equal to its coupon rate, b. the yield to maturity is equal to the internal rate of return of a bond's cash flows, c. the higher the rating on a bond the higher its rate of interest, d. bonds are of higher risk to investors than stock - Answer-B - the YTM is equal to the IRR The price of a bond can be determined by discounting the rema...

CFIN 6 PRACTICE EXAM LATEST 2024 QUESTIONS AND ANSWERS WITH RATIONALES (VERIFIED ANSWERS) ALREADY GRADED A+ It is impossible for the acquisition price of a target firm to ever fall below book value - Answer-false the following could be reasonable estimates of a firm's future terminal value: a. book value, b. liquidation or salvage value, c. a cash flow in perpetuity based on the flow in the final year of the evaluation horizon - Answer-all of the above when a cash flow in perpetuity i...

The implicit assumption behind the dilution method is that the capital markets have fairly valued the stock. - ANS>True Company A has unused debt capacity. Company B acquires Company A to enhance a. financing capability b. diversification c. cash flows d. none of the above - ANS>a. financing capability Book value is based on historical cost. - ANS>True The acquiror begins the negotiation with - ANS>the maximum price it can pay without post-merger earnings per share dilution ...

Where does the Option Selection method appear? Product detail page Universal Containers has these conditions, that when met, an additional discount of 15% will be automatically added to the overall quote. 1. Revenue Account on the quote object is set as "Interest Revenue". 2. Product A has been added to the quote line. 3. User Count on the account is greater than 25. According to the business requirements, either the Revenue Account is set to "Interest Revenue" or both Product ...

MGT 301 Exam 2 Solution Manual Fully Solved Bullwhip--Define the bullwhip effect and discuss why order magnitude and variability increase for upstream suppliers - Answers is a distribution channel phenomenon in which forecasts yield supply chain inefficiencies. It refers to increasing swings in inventory in response to shifts in customer demand as one moves further up the supply chain. forecasts & their corresponding orders along the supply chain can become amplified and accumulate---causin...

SFDC Sales Cloud Certification – NaBil (The Best Updated Correct Questions and Answers A+ Graded 100% Excel) 1. Universal Containers is experiencing a drop in profitability due to excessive sales discounting. What can UC do to monitor and control discounting? (Choose 2 answers) a. Publish an approval matrix doc. to a centralized repository b. Limit the # of products that can be added to an opp. c. Ensure that sales management has approval authority on requested discounts d. Evaluate ...

Tax Article Summary (Bonus Question) - correct answer - New tax law will make life harder for companies struggling financially - New law is now that companies can only carry forward - No more refunds from carrying back losses :( - Example of carrying back losses: 2010 $100,000 in profits $38,000 in taxes 2011 $1,000,000 in losses $0 in taxes Carry back $100,000 tax inc. ($900,000 left to carry forawrd) Refund of $38,000 Shark-tank Valuation: YON...

Barney Fletcher Final Exam | 100 Questions with 100% Correct Answers | Verified | Latest Update 2024 B. an exclusive right to sell listing - -A seller wants to list the property with a broker, but wants to avoid paying any commission should the seller be fortunate enough to sell the property. himself. Which of the following should the seller avoid signing? A. an exclusive agency listing B. an exclusive right to sell listing C. an open listing D. all listings C. do not tell them even ...

CFIN LATEST 2024 FORM A REAL EXAM QUESTIONS AND CORRECT ANSWERS (ALL CORRECT) A GRADE It does not recognize cash flows beyond the payback period - Answer-A shortcoming of the simple payback method is Should be qualitatively considered before selection - Answer-If IRR is higher than the hurdle rate, the investment False - Answer-T/F The payback method accounts for time value of money B: added to net income - Answer-To determine cash flow, depreciation is A: after tax cost - Answer-T...