12 - Name Chapter 12-Valuation: Cash-Flow-Based Approaches...

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Name Chapter 12--Valuation: Cash-Flow-Based Approaches Description Instructions Modify Add Question Here Question 1 Multiple Choice 0 points Modify Remove Question Which of the following is not a problem with using a dividend-based valuation formula Answer dividends are arbitrarily established dividends represent a transfer of wealth to shareholders some firms do not pay a regular periodic dividend it is a challenge to forecast the final liquidating dividend Add Question Here Question 2 Multiple Choice 0 points Modify Remove Question The conceptual framework for free cash flows separates the balance sheet equation into the following categories: Answer CA + LT A = CL + LT L + SE OA + FA = OL + FL + SE OA + FA = OL + FL + OSE + FSE Non-FA + FA = Non-FL + FL + SE Add Question Here Question 3 Multiple Choice 0 points Modify Remove Question The conceptual framework for free cash flows separates all assets and liabilities into the following categories: Answer Current and non-current Monetary and non-monetary Operating and non-operating Operating and financial Add Question Here Question 4 Multiple Choice 0 points Modify Remove Question Starting with cash flow from operations and adjusting for net interest after tax and cash requirements for liquidity equals Answer free cash flows for all debt and equity capital stakeholders free cash flow free cash flows to common equity capital shareholders free cash flow from operations Add Question Here Question 5 Multiple Choice 0 points Modify Remove Question When calculating free cash flows to common equity shareholders financing activities do not include: Answer Debt cash flows Adjustments for capital expenditures Adjustments for Preferred stock cash flows Financial asset cash flows Add Question Here Question 6 Multiple Choice 0 points Modify Remove Question If an analyst wants to value a potential investment in the common stock equity in a firm the relevant cash flows the analyst should use are Answer free cash flow from operations free cash flows for all debt and equity capital stakeholders free cash flows to common equity shareholders cash flow from operations Add Question Here Question 7 Multiple Choice 0 points Modify Remove Question If an analyst wants to value a potential investment in the net operating assets of a division of another firm the relevant cash flows the analyst should use are Answer free cash flow from operations free cash flows for all debt and equity capital stakeholders free cash flows to common equity shareholders cash flow from operations Add Question Here Multiple Choice 0 points Modify Remove
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Question 8 Question If an analyst wants to value a potential investment in the common stock equity of a firm the analyst should discount the projected free cash flows at the Answer required return on equity capital weighted average cost of capital risk free rate market risk premium Add Question Here Question 9 Multiple Choice 0 points Modify Remove Question If an analyst wants to value a potential investment in the net operating assets of a division of another firm the analyst
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12 - Name Chapter 12-Valuation: Cash-Flow-Based Approaches...

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