FIN MDL - MIDTERM

• - Valuing the company’s productive activities. purposes of a corporate acquisition.

• - Valuing the shares of a company, whether for the purpose of buying of selling a single share or valuing all of the equity for depends on the value of the company that has issued the debt.

• - Valuing the company’s debt. When debt is risky, its value options, etc..

• In The accounting approach to EV moves items on the balance sheet

these are on the left-hand side of the balance sheet

• In The accounting approach to EV moves items on the balance sheet

all of these are on the right-hand side

• it is often a useful starting point for thinking about the enterprise value.

  
  

• to replace the firm’s book value of equity with the market value of the equity.

• can best be thought of as the cash flows produced by the firm’s productive assets—its working capital, fixed assets, goodwill, etc.

• It is a useful starting framework for the valuation process.

• The firm’s ___________ are defined as the cash created by the firm’s operating activities