Discuss and evaluate the discounted cash flow method for determining the target company's value.
Discuss and evaluate the discounted cash flow method for determining the target company's value.
Homework Answers
Discounted cash flow method considers the time value of money and the cash outflows including working capital and capital expenditure required for increased levels of business forecasted. It is considered relevant and appropriate in case of companies / businesses which are in the growth phase of business cycle.
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Discuss and evaluate the discounted cash flow method for
determining the target company's value.
Discuss the advantages and disadvantages of the discounted cash flow model.
Discuss the advantages and disadvantages of the discounted cash flow model.
Which of the following ways to evaluate profitability deal with discounted cash flow techniques? Internal Rate...
Which of the following ways to evaluate profitability deal with discounted cash flow techniques? Internal Rate of Return (IRR) Net Present Value (NPV) Accounting Rate of Return (ARR) a and b All of the above
Cash-flow A consists of $2,000 in year 4. Cash-flow B is the "discounted value" (arriving in...
Cash-flow A consists of $2,000 in year 4. Cash-flow B is the "discounted value" (arriving in year 2) of cash-flow A. If the interest rate is 3% compounded annually, how big is cash-flow B?
Cash-flow A consists of $2,000 in year 4. Cash-flow B is the "discounted value" (arriving in...
Cash-flow A consists of $2,000 in year 4. Cash-flow B is the "discounted value" (arriving in year 2) of cash-flow A. If the interest rate is 3% compounded annually, how big is cash-flow B? A. $1,885.19 B. $1,861.22 C. $1,922.51 D. $1,761.22
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...
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...
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?
(a) Explain and discuss the discounted free cash flow equity valuation model. (b) CBT has reported...
(a) Explain and discuss the discounted free cash flow equity valuation model. (b) CBT has reported EBIT of $500mn this year. Its net investment, including capital expenditure net of depreciation and working capital investment is $200mn. Its EBIT and investment needs are expected to grow at a constant rate of 1% per year. It is expected that CBT maintains the current debt-to-equity ratio of 4. The corporate tax rate is 20%. The required return on its assets (business) is 14%....
The present value of the following cash flow stream is $2,487.24 when discounted at 12 percent...
The present value of the following cash flow stream is $2,487.24 when discounted at 12 percent annually. What is the value of the missing (t=2) cash flow?
The present value of the following cash flow stream is $5,933.86 when discounted at 11 percent...
The present value of the following cash flow stream is $5,933.86 when discounted at 11 percent annually. What is the value of the missing cash flow? (Please show work)
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Amplitude=3;
fs=8000;
n=0:399;
t=0:1/fs: n*1/fs-1/fs;
signal=3+3*cos(2*pi*1100*t)+3*cos(2*pi*2200*t)+3*cos(2*pi*3300*t);
fftSignal= fft(signal);
fftSignal=f ftshift (fftSignal);
f=fs/2*linspace(-1,1,fs);
plot(f,abs(fftsignal);
xlabel('Frequency(Hz)’)
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