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

2024 Trading Comps Modeling Exam Wall Street Prep / Wall Street Prep Premium Exam Transaction Comps Modeling Wall Street Prep Exam GRADED A+ the terminal value of a business that grows indefinitely is calculated as follows - ANSWER-cash flow from period "t+1" divided by (discount rate-growth rate) the two-stage DCF model is: - ANSWER-where stage 1 is an explicit projection of free cash flows (generally for 5-10 years), and stage 2 is a lump-sum estimate of the cash flows beyond the ...

2024 Trading Comps Modeling Exam Wall Street Prep / Wall Street Prep Premium Exam Transaction Comps Modeling Wall Street Prep Exam GRADED A+ the terminal value of a business that grows indefinitely is calculated as follows - ANSWER-cash flow from period "t+1" divided by (discount rate-growth rate) the two-stage DCF model is: - ANSWER-where stage 1 is an explicit projection of free cash flows (generally for 5-10 years), and stage 2 is a lump-sum estimate of the cash flows beyond the ...

ETS Major Field Test (Practice Test): Bachelor's Degree in Business. The common characteristic possessed by all assets is a) Long life b) Great monetary value c) Tangible nature d) Future economic benefit Which Foreign Direct Investment (FDI) attempts to acquire particular resources at a lower real cost than could be obtained in the home country? a) Market-seeking FDI b) Efficiency-seeking FDI c) Resource-seeking FDI d) Strategic asset-seeking FDI Under the Uniform Comm...

When estimating the market value of an income-producing property, the appraiser will not consider: Correct Answer-Income Taxes attributable 5. In income capitalization, value is measured as the present worth of the: Correct Answer-net operating income + the reversion 6. Income capitalization techniques are not typically used in valuing: Correct Answer-Properties that do not generate Income 7. The monthly rental being paid for a comparable rental property is called: Correct Answer-contra...

Wall Street Prep Premium Exam correctly answered 2023What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? Extraordinary gains/losses what is false about depreciation and amortization D&A may be classified within interest expense Company X's current assets increased by $40 million from 2007-2008 while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capital was a decr...

WGU C214 Financial Management Test Bank | More than 200 Questions and Verified Answers| 100% Correct | 2023/ 2024 Updated QUESTION What is the most effective use of financial statements in valuing a stock? a. Use the book value of equity on the balance sheet b. Use GAAP earnnings c. Use data to estimate future earnings d. Read the footnotes Answer: c QUESTION If market interest rates rise, what impact does it have on a given bond? a. Its price decreases b. It will h...

How do you calculate FCF> - Answer-FCF = EBIT x (1-t) +D&A-capex-change in NWC How do you determine which of the valuation methodologies to use? - Answer-The best way to determine the value of a company is to use a combination of all the methodologies and zero in on an appropriate valuation. If you have a precedent transaction you feel is extremely accurate, you may give that more weight if you are extremely confident in your DCF you may give that more weight. Valuing a company is as muc...

ABV Ch 4 Exam Questions & Answers 2024/2025 What is a principle underlying the income approach? a. economic utility b. future benefits c. optimal benefits d. non-efficient markets - ANSWERSb. future benefits Capitalization (capitalization cash flow method) - ANSWERSSingle period valuation model that converts a benefits stream into value by dividing the cash flow by a rate of return adjusted for growth. Which earnings parameter is appropriate to use as WACC as a proxy for a disc...

Wall Street Prep Exam Questions With 100% Correct Answers Latest 2024/2025 (GRADED A+) What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? Extraordinary gains/losses what is false about depreciation and amortization 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. the cash impact of the change in working capi...

AAFM ADVANCED FINANCIAL MANAGEMENT EXAM 1 2024 WITH 100% ACCURATE ANSWERS A non-refunding bond can be paid off or refinanced with operating cash flows. It cannot be refinanced by issuing a new bond. - correct answer True A refunding bond can be refinanced by issuing a new bond to pay off the principal of the old bond. - correct answer True The after-tax rate to use to discount the cash flows associated with a bond-refunding problem is the after-tax cost of debt. The before-tax rate to...