Question

1. Which of the following must be added to Operating Income when calculating Free Cash Flow?...

1.

Which of the following must be added to Operating Income when calculating Free Cash Flow?

Group of answer choices

Depreciation

Principal payments

Interest payments

Capital expenditures

Tax payments

2.

Replacement Value is a variation of:

Group of answer choices

Market-Comparable Valuation Method

Earning Capitalization Method

Present Value of Future Cash Flows Method

Market Capitalization Method

Asset-based Valuation Method

2.

Replacement Value is a variation of:

Group of answer choices

Market-Comparable Valuation Method

Earning Capitalization Method

Present Value of Future Cash Flows Method

Market Capitalization Method

Asset-based Valuation Method

3.

Which of the following is not one of the six top factors venture capitalists evaluate in analyzing a candidate for investment?

Group of answer choices

Management team

Business plan

Product/service

Investors'recommendations

Target market

4.

The period when the prior shareholders are not permitted to sell any of their stock is called:

Group of answer choices

Lockup period

Blocking period

Limited period

Baning period

None of the above

5.

Which factor plays the largest role in a venture receiving a second round of venture capital?

Group of answer choices

Number of media mentions the start-up receives

Progress on meeting performance milestones.

Success in recruiting talented employees

None of the above

6.Briefly describe the principle of the build-up method and its advantages.

7.Explain the comparable method.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

1. The correct option is Depreciation

2. The correct option is Asset-based Valuation Method

3. The correct option is Investors' recommendations

4. The correct option is Lockup period

5. The correct option is Track record in meeting performance milestones.

Do give a positive rating if you think this helped

Add a comment
Know the answer?
Add Answer to:
1. Which of the following must be added to Operating Income when calculating Free Cash Flow?...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Cash-flow-based valuation focuses on free cash flow generation. This method determines the share value as the present va...

    Cash-flow-based valuation focuses on free cash flow generation. This method determines the share value as the present value of the free cash flows that are available to its holders. This is based off of first payments to operations and debt. An example of this method that is popular is the Discounted cash flows. It estimates the value of an investment based on future cash flows. What does everyone think about this statement? Do you agree or disagree?

  • Which one of the following factors is not considered calculating a firm’s PEG ratio? Projected growth...

    Which one of the following factors is not considered calculating a firm’s PEG ratio? Projected growth rate of the value indicator (e.g., earnings) Ratio of market price to value indicator (e.g., P/E) Share exchange ratio Historical growth rate of the value indicator None of the above 2.         In determining the purchase price for an acquisition target, which one of the following valuation methods does not require the addition of a purchase price premium? Discounted cash flow method Comparable companies’ method...

  • Which of the following is a characteristic specific to an operating lease? Group of answer choices...

    Which of the following is a characteristic specific to an operating lease? Group of answer choices A.) The only asset reported in connection with the lease is the leased equipment. B.)The amount of lease liability is calculated at the present value of the future cash flows. C.)The only liability to be reported is the amount of rent expense that is currently due. D.) The leased asset is depreciated by the lessee over its useful life. E.) The interest expense is...

  • Which of these is the weakest reason to prefer using the Discounted Cash Flow Method over...

    Which of these is the weakest reason to prefer using the Discounted Cash Flow Method over the Multiples Method to value firm A which operates in industry B? Group of answer choices There is no rush to arrive at an answer. You believe the other firms in industry B are generally valued by the market at less than their true worth. You think you can accurately project firm A's future cash flows. There are many public firms in industry B...

  • 33. Which of the following should be added to net income in calculating net cash flow...

    33. Which of the following should be added to net income in calculating net cash flow from operating activities using the indirect method? a depreciation expense b. an increase in inventory c. again on the sale of equipment d. dividends declared and paid 34. A corporation uses the Indirect Statement of Cash Flows. A fixed asset has been sold for $25,000 representing a gain of $3,750. The value in the cocrating activities section regarding this event would be: a $25,000...

  • Which of these is the weakest reason to prefer using the Discounted Cash Flow Method over...

    Which of these is the weakest reason to prefer using the Discounted Cash Flow Method over the Multiples Method to value firm A which operates in industry B? Group of answer choices a. There is no rush to arrive at an answer. b. You believe the other firms in industry B are generally valued by the market at less than their true worth. c. You think you can accurately project firm A's future cash flows. d. There are many public...

  • Basic Stock Valuation: Free Cash Flow Valuation Model The recognition that dividends are dependent on earnings,...

    Basic Stock Valuation: Free Cash Flow Valuation Model The recognition that dividends are dependent on earnings, so a reliable dividend forecast is based on an underlying forecast of the firm's future sales, costs and capital requirements, has led to an alternative stock valuation approach, known as the free cash flow valuation model. The market value of a firm is equal to the present value of its expected future free cash flows: Market value of company FCF (1+WACC) + FCF (1+WACC)...

  • 1. Which of the following capital investment evaluation methods use present values? A. Net present value...

    1. Which of the following capital investment evaluation methods use present values? A. Net present value method B.Average rate of return method C. Both "Net present value method" and "Average rate of return method" D. Neither "Net present value method" nor "Average rate of return method" 2. A common characteristic found in capital investment evaluation methods that use present values is ________. no interest rate an interest rate their ease of use None of these choices are correct. 3.  Assume that...

  • 3. Fundamentals of the free cash flow corporate valuation model Aa Aa E Several methods can...

    3. Fundamentals of the free cash flow corporate valuation model Aa Aa E Several methods can be used to compute the intrinsic value of a share of a company's common stock. One method uses the free cash flow (FCF) valuation model, while the another method uses the dividend discount model. The FCF valuation model computes a firm's value-also called its the value of its operating activities (Vop) and the value of firm's nonoperating value-as the sum of , where: the...

  • 1) The cash flow statement's primary purpose is to provide information about the changes in assets,...

    1) The cash flow statement's primary purpose is to provide information about the changes in assets, liabilities, and owners' equity of an entity during a period. about the cash receipts and cash payments of an entity during a period. about the entity's ability to meet its obligations and to pay dividends. that is useful in assessing future cash flow prospects. 2) In a period of rising prices, the inventory method which tends to give the lowest reported cost of goods...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT