2. Which of the following statements are correct with respect to corporate valuations (there may be...
2. Which of the following statements are correct with respect to corporate valuations (there may be more than one correct answer to this question)?
a) Corporate valuation is based solely on historical financial performance
b) Enterprise value is the value attributable to both debt and equity holders
c) The DCF methodology uses a cost of capital which reflects the average required return rate to all capital providers (debt and equity)
incorrect
Homework Answers
b) Enterprise value is the value attributable to both debt and equity holders
c) The DCF methodology uses a cost of capital which reflects the average required return rate to all capital providers (debt and equity)
Add Answer to:
2. Which of the following statements are correct with respect to
corporate valuations (there may be...
3. Which of the following statement is correct with respect to corporate valuations? a) The market...
3. Which of the following statement is correct with respect to corporate valuations? a) The market value of a share can be derived from the enterprise value, the net financial debt and number of shares of a company b) The enterprise value of a company is the value attributable to its shareholders c) A company's value is the same for all d) The market value of a company can be found in its financial statements
1. Among the following statements, only 3 are correct with respect to corporate valuations. Identify which...
1. Among the following statements, only 3 are correct with respect to corporate valuations. Identify which ones. a) There are several potential values for a single company b) Valuation combines business and financial analysis, as well as the use of valuation methodologies c) The value of a company with stable earnings does not change over time d) Valuation is only based on future earnings projections, one does not take into account current or historical performance at all unanswered
8. Which of the following statements are correct with respect to the discounted cash flow (DCF)...
8. Which of the following statements are correct with respect to the discounted cash flow (DCF) analysis? There may be more than one correct answer to this question. a) The DCF analysis relies upon discounting projected unlevered free cash flows to estimate the enterprise value of a company b) The DCF analysis relies upon discounting projected company’s cash flows to estimate the market value of equity of a company c) The DCF analysis only considers a defined projection period d) ...
6. Which of the following statements are correct with respect to the market value of equity...
6. Which of the following statements are correct with respect to the market value of equity (MVE)? There may be more than one correct answer to this question. a) MVE is equal to the sum between enterprise value and net financial liabilities b) MVE is the same as shareholders’ funds in a company’s balance sheet c) MVE can be calculated as the company’s share price multiplied by the number of shares outstanding d) MVE is equal to enterprise value less...
Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019. Balance...
Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019. Balance Sheet December 31 2019 Cash $ 264,800 Accounts receivable 154,800 Inventory 389, eee Total current assets $ 827,899 Long-lived assets 1,680, eee Total assets $2,487,eee Current liabilities 248, eee Long-term debt 990.ea3 Shareholders' equity 1,339, eee Total debt and equity $2,487,000 2018 $ 139.ee 229,000 179,800 $ 547,899 1,540,888 $2,887,899 215,800 8 40. 1,832, 800 $2,887,899 Income Statement For the years ended December 31...
4. Among the following statements, only 3 are correct. Identify which ones. a) The market value...
4. Among the following statements, only 3 are correct. Identify which ones. a) The market value of a company depends on its past earnings b) Growth in future earnings has an impact on the value of a company's stock c) Investors are more focused on cash flows than profit when valuing a company's stock d) Qualitative factors may impact the value of a company's stock e) The DCF valuation methodology relies on cash flow forecasts
Biblio... Saved Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019 Balance Sheet December 31 2819 2018 Cash $ 270,000 145,000 160,866 395,0...
Biblio... Saved Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019 Balance Sheet December 31 2819 2018 Cash $ 270,000 145,000 160,866 395,000 Accounts receivable 235,008 185,006 Inventory Total current assets $ 825,000 565,000 1,748,901,600,e89 $2,565,0e0 $2,165,0e0 Long-lived assets Total assets Current liabilities 275,000 900,000 990,00 320,000 900,000 1,345,009 Long-term debt Shareholders' equity $2,565,000 $2,165,000 Total debt and equity Income Statement For the years ended December 31 2019 2018 $3,600,000 $3,700,000 2,700,000 2,800,000 900,000...
Received b c and e as answers but this is incorrect 4. Among the following statements,...
Received b c and e as answers but this is incorrect 4. Among the following statements, only 3 are correct. Identify which ones. a) The market value of a company depends on its past earnings b) Growth in future earnings has an impact on the value of a company's stock c) Investors are more focused on cash flows than profit when valuing a company's stock d) Qualitative factors may impact the value of a company's stock e) The DCF valuation...
Which of the following statements is CORRECT? a. The first, and perhaps the most critical, step...
Which of the following statements is CORRECT? a. The first, and perhaps the most critical, step in forecasting financial requirements is to forecast future sales. b. The capital intensity ratio gives us an idea of the physical condition of the firm’s fixed assets. c. Forecasted financial statements, as discussed in the text, are used primarily as a part of the managerial compensation program, where management’s historical performance is evaluated. d. Perhaps the most important step when developing forecasted financial statements...
1. With respect to the preparation of fund basis financial statements, enterprise funds are considered to...
1. With respect to the preparation of fund basis financial statements, enterprise funds are considered to be major when which of the following conditions exist? Multiple Choice Both When total assets, liabilities, revenues, or expenses of that individual enterprise fund constitutes 10% of the total for the enterprise fund category and When total assets, liabilities, revenues, or expenses of that individual enterprise fund are 5% of the total of the governmental and enterprise categories, combined required to be a major...
Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019. Balance Sheet December 31 2019 Cash $ 264,800 Accounts receivable 154,800 Inventory 389, eee Total current assets $ 827,899 Long-lived assets 1,680, eee Total assets $2,487,eee Current liabilities 248, eee Long-term debt 990.ea3 Shareholders' equity 1,339, eee Total debt and equity $2,487,000 2018 $ 139.ee 229,000 179,800 $ 547,899 1,540,888 $2,887,899 215,800 8 40. 1,832, 800 $2,887,899 Income Statement For the years ended December 31...
Biblio... Saved Williams Company is a manufacturer of auto parts having the following financial statements for 2018-2019 Balance Sheet December 31 2819 2018 Cash $ 270,000 145,000 160,866 395,000 Accounts receivable 235,008 185,006 Inventory Total current assets $ 825,000 565,000 1,748,901,600,e89 $2,565,0e0 $2,165,0e0 Long-lived assets Total assets Current liabilities 275,000 900,000 990,00 320,000 900,000 1,345,009 Long-term debt Shareholders' equity $2,565,000 $2,165,000 Total debt and equity Income Statement For the years ended December 31 2019 2018 $3,600,000 $3,700,000 2,700,000 2,800,000 900,000...
Most questions answered within 3 hours.
-
5. The developer of a new welding rod claims that spot welds
using his product will...
asked 3 minutes ago -
A few random results for you to ponder…do the results justify
the conclusions? Why or why...
asked 6 minutes ago -
Which of the following is the most accurate description of how a
sound wave propagates?
a)...
asked 5 minutes ago -
Before the final distribution of cash, account balances are:
Cash $23,000; S. Penn, Capital $19,000 (Cr.);...
asked 10 minutes ago -
On May 1, Sequoia Inc. issued 30,000 shares of its common stock
with a $15 par...
asked 11 minutes ago -
For Python 2.7.8, Write a program that defines
a function that prints a short poem or...
asked 11 minutes ago -
An optical disk drive in your computer can spin a disk up to
10,000 rpm (about...
asked 22 minutes ago -
Is the purpose of lightning rods to attract lightning?
asked 30 minutes ago -
Let A be an event included in S that is independent of itself.
Then we have:...
asked 30 minutes ago -
The Adverse Childhood Experiences (ACE) Study has had a great
impact on moving psychologists to be...
asked 27 minutes ago -
Write a paper on: Assume that you have been assigned as the
project manager for a...
asked 31 minutes ago -
You plan to save $5,700 per year for the next 10 years. After
the last deposit,...
asked 1 hour ago