Business Valuation Quiz

Business Valuation Quiz

University

8 Qs

quiz-placeholder

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Business Valuation Quiz

Business Valuation Quiz

Assessment

Quiz

Business

University

Hard

Created by

Jozef Glova

Used 2+ times

FREE Resource

8 questions

Show all answers

1.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

Which valuation approach is not necessarily based on future earnings but also historical costs?

Discounted Cash Flow (DCF)

Asset-based valuation

Relative valuation

2.

MULTIPLE CHOICE QUESTION

45 sec • 2 pts

If EPS is 2.8 EUR, PE ratio is 9 times than market value per share is __________

1.6

11.8

25.2

3.214

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The valuation of a common stock today primarily depends on

the number of shares outstanding and the number of its shareholders.

its expected future dividends and its discount rate.

Wall Street analysts.

the price to earnings ratio.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What will happen to the market value of a bond if interest rates rise?

market value will decrease

market value will increase

Stay the same

No idea

5.

MULTIPLE CHOICE QUESTION

45 sec • 2 pts

CK Company stockholders expect to receive a year-end dividend of $5 per share and then immediately sell their shares for $115 dollars per share. If the required rate of return for the stock is 20 percent, what is the current value of the stock?

$132

$122

$100

$110

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is FCFE?

Fast Cash for Equity

Fast Cash Flow to Equilibrium

Free Cash Formula to Equity

Free Cash Flow to Equity

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

A bond which has a yield to maturity greater than its coupon rate will sell for a price

below par

at par

above par

equal to face value of bond plus the interest payments

8.

MULTIPLE SELECT QUESTION

30 sec • 1 pt

What does the Discounted Cash Flow (DCF) valuation consider?

the time value of money

historic cost

comparison of other businesses