Discount cash flow model - Study guides, Class notes & Summaries

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...

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...

Bloomberg Market Concepts Latest Update with Verified Solutions "AV will lull you into a sense of security" sensitivities: 1) revenues & costs may be in other currencies... buffeted by moves in FX market 2) many companies are impacted by commodities markets 3) moves in 10 yr gov bond yields change "risk-free" rates 4) share price itself can impact share price... a company w/ a rising share price can raise funds for growth more easily 11 industry groups communication services, energy, rea...

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 Test Bank Project Management, Top Exam Questions and answers, Approved. 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 locati...

Adventis Financial Modeling Certification (FMC) Level 2 Exam Prep (New 2023/ 2024 Update) Questions and Verified Answers_ 100% Correct QUESTION why is tax-effected EBIT used rather than net income Answer: - the valuation should not depend on capital structure - applying the tax-rate directly to EBIT without subtracting interest expense eliminates the impact of capital structure to cash flow QUESTION cash flow is projected out in the projection period which is typical...

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...

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...

Coupon Rate - Correct answer-The interest rate that a company promises to pay on bonds Market Rate - Correct answer-The interest rate on other comparable bonds Par Value - Correct answer-The amount payable on maturity of the bond Market rate - Correct answer-Same as YTM - Yield to Maturity Gordon Growth Model - Correct answer-Assumes stable growth rates and does not incorporate risk CAPM Model - Correct answer-Allows to determine expected return on stocks and incorporates risk How do pu...

LBO Modeling Exam Wallstreet Prep Questions With Answers Latest Updated 2024/2025 (Graded A+) What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? - ANSWER>>>Extraordinary gains/losses what is false about depreciation and amortization - ANSWER>>>D&A may be classified within interest expense Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 million over the same period....