Free Cash Flow to the Firm is cash flow that is available to:
A. Only debt-holders.
B. Only equity holders.
C. Make capital investments.
D. Both debt-holders and equity holders.
E. Debt-holders, equity holders, and for capital investments.
A typical use of a valuation could be to:
A. Assess a company’s proposed investment in new equipment.
B. Determine a price to offer in a proposed acquisition.
C. Value a business asset held in an estate that is subject to estate tax,
D. Evaluate the price at which a private equity investor might offer to buy a publicly-traded firm.
E. All of the above.
A Discounted Cash Flow analysis includes all of the following steps except for:
A. Forecast the amount and timing of future cash flows.
B. Estimate a risk-appropriate discount rate.
C. Determine the adjusted value of a comparable firm.
D. Discount the cash flows.
E. All of these steps are included in a Discounted Cash Flow analysis.