NURSING TEST

Valuations & Loan Security Valuations Questions and Answers How does an equivalent yield differ from a net initial yield? Both single metrics, albeit net intitial yield does not account for rental fluctuations or void periods. In a discounted cash flow, what is the discount rate applied? The IRR. In targeted - set specific by a investor. If using DCF to detemine DCF output, the NPV will calcualte to £0, providing the appropriate IRR. How is the Equivalent Yield impacted by Ca...

Valuation Questions & Answers – Basic Questions and Answers What are the 3 major valuation methodologies? Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis. 2. Rank the 3 valuation methodologies from highest to lowest expected value Trick question - there is no ranking that always holds. In general, Precedent Transactions will be higher than Comparable Companies due to the Control Premium built into acquisitions. Beyond that, a DCF could go either way ...

M&I 400 Valuation Basic Questions and Answers Rank the 3 valuation methodologies from highest to lowest expected value. Precedent Transaction will usually produce a higher valuation than Comps because of the Control Premium associated with acquisitions. DCF has most variable value(usually the highest, but dependent on assumptions) When would you not use a DCF in a Valuation? A DCF should not be used for companies with unsteady/unstable cash flow(like tech or bio-tech firms) or when deb...

Valuation Interview Questions and Answers What are the 3 major valuation methodologies? Public Company Comparables (Public Comps), Precedent Transactions and the Discounted Cash Flow Analysis. Public Comps and Precedent Transactions are examples of relative valuation (based on market values) while the DCF is intrinsic valuation (based on cash flows.) Can you walk me through how you use Public Comps and Precedent Transactions? First you select the companies and transactions based on cri...

Financial Accounting Module 7 What are retained earnings, and how do you calculate them? Retained earnings is an owners' equity account that reflects the earnings that have been retained in the business to finance growth or future operations. Retained Earnings=Net Income +retained earnings of previous year - dividends to be paid What is the Free Cash Flow, and how do you calculate it? Free Cash Flow is an indication of how much actual cash is generated and available to be paid ou...

420 Forecasting + Valuation Practice Problems Questions and Answers Which type of financial statement analysis is most commonly used to create a baseline estimate for a financial forecast? Common-size analysis Damon estimates his beginning cash balance for June to be $10,000, with cash inflows of $4,000 and cash outflows of $6,000 for the month. Which of the following is true? Damon has a cash deficit of $2,000 that reduces his beginning cash balance. Debtors create projections ...

Investment Banking Valuation, Equity Value, and Enterprise Value Questions and Answers What are 4 industries where DCFs are not relevant? Commercial Banks Insurance Firms (Some) Oil & Gas Companies Real Estate Investment Trusts (REITs). What 4 factors do you use to pick comparable public companies? Example of a comps set title? Acronym: GIFT! - Geography (US? China? Europe? South America?). - Industry (Diversified Consumer? Food and Beverages specifically?). - Financials (R...

Valuation Questions & Answers – Advanced Questions and Answers Things to Keep in Mind These questions cover 3 different topics: 1. More advanced valuation methodologies. 2. Valuation nuances such as calendarization, non- recurring charges, and where to find information on deals and companies. 3. Industry-specific valuation and special cases, such as private companies, IPOs, and more. There are not that many truly "Advanced" interview questions on Valuation because most of the d...

M3 Financial Valuation Methods Questions and Answers Coldwell is using a constant growth dividend discount model to forecast the value of a share of common stock. Inherent in Coldwell's assumptions is the idea that: A. Stock price will grow at the same amount as the dividend. B. Dividends will grow at a rate faster than the presumed discount rate. C. Compounding growth is linear. D. Stock price will grow at the same rate as the dividend. D An underlying assumption of the constant gro...

Financial Statement Analysis and Valuation Midterm Questions and Answers F/S Analysis and Valuation 4-step Process 1. Understanding the business environment and Acct. Information 2. Adjusting and assessing Financial information and accounting info. 3. Forecasting financial information 4. Using information for valuation Demand for Financial Accounting Information 1. Managers and Employees (internal users) 2. Investment Analysts 3. Creditors and Suppliers 4. Stockholders and (board...