Business valuation 2

What is the primary purpose of conducting a business valuation, except?

• Selling a business

• Investment recommendation

• Raising money (IPO)

• Employee training

Valuation technique, except:

• Asset approach

• Intrinsic value

• Relative value

• Relativity

What is the purpose of using the asset approach in business valuation?

• Estimating the value of a business based on its assets

• Assessing the market value of a business

• Calculating the future cash flows of a business

• Measuring the brand value of a business

Which valuation method focuses on determining the intrinsic value of a business?

• Asset approach

• Market approach

• Income approach

• Cost approach

What is the main objective of using the relative value method in business valuation?

• Comparing the business with industry peers

• Calculating the net worth of the business

• Assessing the tangible assets of the business

• Estimating the liquidation value of the business

Calculating enterprise value:

• Enterprise value = market capitalization + net debt

• Enterprise value = market capitalization - net debt

• Enterprise value = market capitalization + (debt - cash)

• Enterprise value = market capitalization + (debt +cash)

Unlevered free cash flow:

• the cash that a business has before paying its debt obligation

• the cash that a business has after it has met its debt obligation

• net cash flow

• cash flow form operating, investing and financing

WACC:

• Yield (1-tax)

• risk free rate + (beta x equity risk premium)

• cost of capital from all capital providers

• the required rate of return

Unlevered free cash flow method, except:

• EBIT Method

• Net Income method

• EBITDA method

• GPM Method

Terminal value calculating method:

• perpetuity growth method and terminal multiple method

• perpetuity growth method and DCF method

• terminal multiple method and DCF method

• NPV and IRR