Enterprise value ev Study guides, Class notes & Summaries

Discounted Cash Flow Analysis the value of a company can be derived from the PV of its projected FCF (free cash flow) What kind of value is DCF? (intrinsic value or market value) Intrinsic Value, as opposed to market-values such as Company Comparables or Precedent Transactions Projection Period Length 5 years Terminal Value - used to capture the remaining value of the target beyond the projection period -used to quantify the remaining value of the target after the projection period Weighted ...

Leveraged Buyout (LBO) an attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing (debt) total debt capacity Debt capacity refers to the total amount of debt a business can incur and repay according to the terms of a debt agreement this is normally however much debt the company has Purchase Price (aka Enterprise Value) Purchase price is usually determined by applying an EV / EBITDA multiple to the company's EBITDA. For example, if a c...

CAPM Practice Exam 260 Questions with Verified Answers 3 things that describe role of a PM ?? - CORRECT ANSWER 1. responsible for the final result of the team 2. need to integrate multiple disciplines 3. communicate with team Cost Management Plan has these 3 characteristics - CORRECT ANSWER 1. describes how project costs will be planned, structured, & controlled 2. may specify level of precision, degree to which activity cost estimates will be rounded up or down 3. may specify varia...

PMP Practice Exam questions and answers. VERIFIED. Which document defines how a project is executed, monitored and controlled, and closed? - -Project Management Plan Which changes occur in risk and uncertainty as well as the cost of changes as the life cycle of a typical project progresses? - -Risk and uncertainty decrease; the cost of changes increases. Which tool or technique is used in the Plan Scope Management process? - -Expert Judgment Which tool or technique is an examination of...

MGT 8803 Financial Management Latest 2023 Rated A Shareholders owners of a corporation; residual claimants Primary Financial Goal of Public Corporation To create economic value for its shareholders Capital Budgeting/Expenditure/Investment Decision process of determining exactly which assets to invest in and how much to invest Future Value = PV x (1+r)^t Present Value amount of money you would need to invest today in order to duplicate some future dollar amount = FV / (1+r)^t Net Present Val...

How do you value banks and financial institutions differently from other companies? - Answer-You mostly use the same methodologies, except: • You look at P / E and P / BV (Book Value) multiples rather than EV / Revenue, EV / EBITDA, and other "normal" multiples, since banks have unique capital structures. • You pay more attention to bank-specific metrics like NAV (Net Asset Value) and you might screen companies and precedent transactions based on those instead. • Rather than a DCF,...

CAPM PRACTICE EXAM 2|256 Questions with Verified Answers The experiences of an organization's members are the basis for its _________. A. culture B. structure C. operations D. maturity - CORRECT ANSWER The experiences of an organization's members are the basis for its _________. A= The culture of an organization is created by its members' experiences. Organizational structures can be: A.functional, strategic or balanced. B.functional, projectized or iterative. C....

Equity Multiplier 权益乘数，又叫普通杠杆率 - Total Assets/Total Equity 通过向普通股股东融资所获得的资产与全部资产的比例 Total Asset Turnover - Sales/Total Assets profit margin - Net Income/Sales ROE - Net Income/Total Equity Market Capitalization - share price * number of shares outstanding Enterprise Value (EV) - Market Capitalization + Market Value of Interest Bearing Debt - Cash PE multiple or PE ratio - price per share/net income per share EBITDA...

LBO Modelling Exam Questions With 100% Correct Answers What is the biggest difference between an LBO and an M&A? - answerUnlike an M&A, we're not assuming the PE firm will keep the company long term What makes a good LBO candidate? - answer-opportunity to cut costs -stable cash flows -good base of assets -undervalued/low-risk Walk me through a basic LBO model. - answer1. Make assumptions about the Purchase Price and how much debt to use 2. Create a Financial Sources & Uses section 3....

Enterprise / Equity Value Questions & Answers - Advanced, Valuation Questions & Answers - Advanced, Merger Model Questions & Answers - Advanced, Merger Model - Basic, Accounting - Basic, Accounting - Advanced, Enterprise / Equity Value Questions & And Answers Are there any problems with the Enterprise Value formula you just gave me? Yes - it's too simple. There are lots of other things you need to add into the formula with real companies: • Net Operating Losses - Should be valued and a...