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

Principle of Finance Milestone 3 Sophia Course,100% correct-Principle of Finance Milestone 3 Sophia Course 1 You invest $1,000 in a stock that has a 15% chance of a 1% return, a 60% chance of a 5% return and a 25% chance of a 7% return. What is your expected return after one year? · 4.3% · 4.9% �� 4.5% · 5.3% CONCEPT Expected Return 2 Which of the following credit ratings would make a country or company have the easiest time raising capital? · CC · A · BBB · AAA CONCEPT The Impact of ...

In Theory, What does the dividend discount model accomplish? correct answers Expresses the equity value as the present value of all future dividends. What is the formula for the dividend discount model? correct answers Equity Value = (Dividend(1)/(1+r)^1) + (Dividend(2)/(1+r)^2).... Drawbacks to Dividend Discount Model? correct answers 1. Equity value is created by Investing and Operational activites (not financing) 2. Dividends are a by-product of value creation, not the catalyst. In ...

Adventis FMC Level 2 Latest Update Rated A+ what is value what people are willing to pay for (what the buyer pays) who said, "Value is what people are willing to pay for" John Naisbitt 2 primary types of valuation 1. relative valuation 2. intrinsic valuation relative valuation refers to what methods that compare the price of a company to the market value of similar assets intrinsic value refers to what the value of a company through fundamental analysis without reference to its market valu...

What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? Extraordinary gains/losses 2. what is false about depreciation and amortization D&A may be classified within interest expense 3. 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 capital was a decrease of 15 million 4. the final component of an earnings projec...

WGU C214 Financial Management 2023/ 2024 Exam| Questions and Verified Answers| Grade A+ Q: What do you do if the question says that the dividend was paid RECENTLY or the dividend was JUST paid? Answer: First you must calculate the expected dividend. Q: How do you know when to use the Gordon Growth model to answer a question? Answer: If you see the word GROW or GROWTH in the question, then it's a GGM question. Q: What is the CAPM model? Answer: Capital Asset Pr...

FIN3703 Assignment 2 (COMPLETE QUESTIONS & ANSWERS) Semester 2 2024 - DUE 7 September 2024 ;100 % TRUSTED workings, Expert Solved, Explanations and Solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)........... Dalton Ltd – is the third largest South African manufacturer of high-quality JoJo tanks with its head offices situated in Midrand. The company owns four branches: one in Naturena, the second in Ennerdale, the third in Pachuca and the fourth in Roodep...

DISCOUNTED CASH FLOW [DCF] EXAM REVIEW QUESTIONS AND ANSWERS, GRADED A+/ A company has a high Debt balance and is paying off a significant portion of its Debt principal each year. How does that impact a DCF? - -Trick question. You don't account for this at all in an Unlevered DCF because you ignore interest expense and debt principal repayments. In a Levered DCF, you factor it in by reducing the interest expense each year as the Debt goes down and also by reducing Free Cash Flow by th...

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 capital was a decrease of 15 million the final component of an earnings projection model i...

ACCO 310 - financial reporting I MULTIPLE CHOICE—Conceptual final exam actual practice verified 2024 questions and answers Concordia University 1. The essential characteristic(s) of accounting is (are) a. communication of financial information to interested persons. b. communication of financial information about economic entities. c. identification, measurement, and communication of financial information. d. all of these. 2. Financial accounting is concerned with the process that cul...

Corporate Finance Complete Exam Study Set |100% Correct| Question and Answers Financial break-even *Ans* Financial break even NPV solved=0, OCF* for NPV=0 Q=(FC+OCF*)/ (P-v) v=variable cost per unit General Break-Even *Ans* Q=(FC+OCF) /(P-v) Constant Growth Model (infinite) *Ans* a widely cited dividend valuation approach that assumes that dividends will grow at a constant rate, but a rate that is less than the required return Constant Growth Model (finite) *Ans* Should include ter...