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Discounted Cash Flow Model Exam Wallstreet prep –[Update] Questions Answered $13.49   Add to cart

Exam (elaborations)

Discounted Cash Flow Model Exam Wallstreet prep –[Update] Questions Answered

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  • Wall Street Prep
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  • Wall Street Prep

Discounted Cash Flow practice questions Wall Street Prep Q&A The Discounted Cash Flow (DCF) fundamental approach to valuing a company's intrinsic worth HIGHLY RATED EXAM COMPLETE WITH SOLUTION GURANTEED SUCCESS!!

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  • September 26, 2024
  • September 26, 2024
  • 21
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  • dcf exam wall street prep
  • Wall Street Prep
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EXPERTIPS
Review: DCF Modeling Exam

Question 1




The next two questions use the data below. The data will be repeated on the next question:




You have been tasked with building a stand-alone DCF valuation for Milner Beverages, a publicly traded company, using the
unlevered two-stage approach. You calculate the following:

$ in millions
2017 018 2019 2020 2021 2022 2023

Unlevered free cash

flow 110.0 120.0 150.0 170.0 200.0 250.0 280.0




In addition, you calculate the following
WACC = 8.00%



Perpetuity growth rate (annual growth rate of unlevered free cashlows after 2023) = 3.00%

Calculate enterprise value at the beginning of 2017 assuming all cashf ows occur at year-end. Use whole numbers (i.e. 1
yearexactly equals 1 period when calculating returns and discounting



$4,173.30


$4,271.40

$4,540.60


$6,505.80


$6,673.80

, Question 2




This question uses the same data as the previous question, shown below
You have been tasked with building a stand-alone DCF valuation for Miner beaverages, a publicly traded company, using the unlevered two-
stage approach. You calculate the following:




In addition, you calculate the following:

WACC = 8.00%

Perpetuity growth rate (annual growth rate of unlevered free cash flows after 2023) = 3.00%

,

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