Biws dcf questions - Study guides, Class notes & Summaries

Are there any rules about filtering out deals for less than 100% of companies or about stock vs. cash deals in Precedent Transactions? - answer-- precedent Transactions will include ONLY 100% acquisition deals - may need to include majority stake deals: ones where the acquirer buys more than 50% but less than 100% of another company - do NOT include minority stake deals: less than 50% - include all deals REGARDLESS of stock vs. cash consideration Are there any screens you should AVOID when...

BIWS 400 Questions - Valuation Questions & Answers - Basic Questions And Answers What are the 3 major valuation methodologies? - ANS Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis. Rank the 3 valuation methodologies from highest to lowest expected value. - ANS Trick question - there is no ranking that always holds. In general, Precedent Transactions will be higher than Comparable Companies due to the Control Premium built into acquisitions. Beyond th...

BIWS LBO Exam Questions With 100% Correct Answers What is a leveraged buyout, and why does it work? - answer- PE firm acquires a company using a combination of debt and equity - it operates it for several years - then sells the company at the end of the period to realize a return on its investment - during the ownership period, the PE firm uses the company's cash flows to pay for the debt interest expense and to repay the debt principal IT WORKS BECAUSE - leverage amplifies returns ...

Difference between levered and unlevered DCF? Correct Answer: A levered DCF projects FCF after interest expense and interest income, where an unlevered DCF projects FCF before the impact of interest. Therefore, a levered DCF attempts to value the equity portion of a company and an unlevered DCF values the company as a whole Steps to calculating the WACC? Correct Answer: 1. Determine the target capital structure consistent with the firm's long term strategy. You can look at historical compa...

BIWS 400 QUESTIONS WITH COMPLETE SOLUTION 2023BIWS 400 QUESTIONS WITH COMPLETE SOLUTION 2023 Let's say I'm working on an IPO for a client. Can you describe briefly what I would do? - correct answer You meet with the client and gather basic information - such as their financial details, an industry overview, and who their customers are. You meet with other bankers and the lawyers to draft the S-1 registration statement - which describes the company's business and markets it to investors. Yo...