Discounted cashflows - Study guides, Class notes & Summaries

DISCOUNTED CASHFLOWS MODELLING EXAM WALL STREET

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DISCOUNTED CASHFLOWS MODELLING EXAM WALL STREET

What are two benefits of making a compacted DCF model 1. Helps us learn the main features of a DCF model 2. Helps in a situation where we need a quick analysis What are two important dates in a DCF 1. Timing of the cashflows 2. Date of Valuation The time value of money is also called the _______ The time quantity of money What is the simplified formula to discount the cashflows Unlevered Free Cash Flow (UFCF)/ Weighted Average Cost of Capital (WACC) What are the three types of valuation tech...

What does almost every valuation method include? - ANSWER-Discounted future Cash Flows or Dividends What is an assumption to make regarding cashflows - ANSWER-Assumption that shareholders have already been rewarded from cashflows generated in the past What should be excluded for future cashflows? - ANSWER-Historical cashflows should be excluded for future cashflows What is the formula for value? - ANSWER-Value = PV of cashflows within the planning horizon + PV of cashflows after the pla...

Financial Management - Exam 2 Verified Solutions Bond ️long-term debt security usually issued by a corporation or government body Bonds ️original maturity of 10 years or more Notes ️shorter term; 10 years or less Mortgage Bonds ️asset-backed securities; specific physical assets used as collateral Collateral Trust Bonds ️ABS; specific non-physical assets used as collateral. Example. Cash flows from specific projects, trademarks, copyrights Debentures ️unsecured bond; mu...

Corporate Finance - Company Valuation Exam Questions With Correct Answers. What does almost every valuation method include? - answerDiscounted future Cash Flows or Dividends What is an assumption to make regarding cashflows - answerAssumption that shareholders have already been rewarded from cashflows generated in the past What should be excluded for future cashflows? - answerHistorical cashflows should be excluded for future cashflows What is the formula for value? - answerValue = PV of...

Profit maximization as a goal of the firm: a. is an economic principle and not an accounting one b. is superior to other goals that could be pursued c. maximizes the wealth of the owners d. does not consider cash flow or risk - correct answer d. does not consider cash flow or risk Wealth maximization as a goal of the firm: a. is usually discounted by bondholders b. takes a long-run perspective and focuses on the owners of the firm c. is a long-run p...

File: ch03, Chapter 3: Indirect Investing Multiple Choice Questions 1. Which of the following is not a characteristic of investments companies? a. pooled investing b. diversification c. managed portfolios d. reduced expenses Ans: d Difficulty: moderate Ref: Investing Indirectly 2. In order to avoid paying income taxes, an investment company must: a. be classified as a non-profit organization b. invest only in municipal bonds. c. pass on interest, dividends, a...