VALUATION

 What needs to be considered when determining the DCF valuation method

• Cash flows

• 1. Firm’s reputation

• 1. Discount rate

• All

A valuation approach that is based on the concept that the actual value of a business lies in the ability to produce revenue, profit and eventually wealth in the future.

• 1. Discounted cash flow 

• 1. Income based approach

• 1. Asset - based approach

• 1. Income based approach

     & Asset based approach

Which DCF valuation should be used when the firm does not pay dividend expected to

• 1. FCFF

• 1. DDM

• 1. FCFE

• 1. FCFE & DDM

Which of the following best describes the relationship between present value (PV) and the discount rate, assuming all other factors remain constant?

• 1. As the discount rate increases, PV increases.

• As the discount rate increases, PV decreases

• The discount rate has no impact on PV.

• 1. PV is always equal to the discount rate.

R&D Technology Corporation just paid a dividend of $0.50 per share. Analysts expect its dividend to grow at 24 percent per year for the next two years and then 8 percent per year thereafter. If the required rate of return in the stock is 16 percent, calculate the current value of the stock.

• 1. 8,28

• 1. 10,13

• 1. 10,31

• 1. 8,82

• 1. Other

Assume that BC Corporation maintains a mix of 35% debt and remaining is common stock, tax rate is 40%. The cost of these types of finance are 9,5%, and 18%. Discount rate for FCFE, FCFF?

• 1. 10,8% - 14,125%

• 1. 18% - 13,36%

• 10,8% - 13,36%

• 1.  18% - 14,125%

Company L has earnings of $6 per share and investors expect that the earnings per share will grow by 4 percent per year. Furthermore, the mean PE ratio of all other firms in the same industry as the company is 10. Calculate the stock price in 2 years using the P/E method. 

• 1. 60

• 1. 61,38

• 1. 64,9

• 1. 61,83

Asset-based valuation is calculated by calculating the difference between the value of the TOTAL ASSETS and a business's OUTSTANDING LIABILITIES.

• 1. True

• 1. Flase

How many Masan Consumer (MCH) manufacturing industries have?

• 3

• 4

• 5

• 6

Which valuation methods should NOT be used when the firm has various products with big size and dominate the market?

(a)