NURSING TEST

Valuation Methods Questions and Answers Public Comps Relative Valuation Method; Compare multiples to companies of a similar industry, finance, and geography Precedent Transactions Relative Valuation; Compare multiples at the time of purchase to companies of similar industry, finance, geography, and TIME. ALways higher b/c companies purchased at a higher price DCF Project FCF, discount to present value, sum FCF, add to discounted TV= Enterprise Value LBO Determine how mu...

Ch. 1 Introduction to Valuation Questions and Answers Perceptions of Value... ...have to be baked up by reality, which implies that the price that is paid for any asset should reflect the cash flows it is expected to generate. Myth 1: Since valuation models are quantitative, valuation is objective. The models used may be quantitative, but the inputs leave plenty of room for subjective judgments. 2 ways to reduce bias: 1) Avoid taking strong public positions on the value of a fi...

Valuation Questions & Answers How are the three main financial statements connected? -net income flows from the is into cash flow from operations on the cf statement -net income minus dividends is added to retained earnings from the prior periods balance sheet to come up with retained earning on the current periods balance sheet -beginning cash on the cf statement is cash on the current periods balance sheet If you could use only one financial statement to evaluate the financial state...

Property Valuation and Financial Analysis Questions and Answers ln the cost approach to appraisal, the phrase "reproduction cost" differs from "replacement cost." "Reproduction cost" measures the: present cost to build an exact replica of the property. Which of the following is not a part of the cost approach appraisal method? Capitalization. When a residence has a physical age of 20 years, but the appraiser notes the building has the appearance of being only 1...

Chapter 6 Financial Information Analysis & Valuation Questions and Answers Which of the following estimates are not always required when calculating depreciation expense? Select all that apply. Salvage value Hasten Corporation has the following metrics for the year. Days sales outstanding: 58.9 Days payables outstanding: 58.3 Days inventory outstanding: 28.8 The cash conversion cycle for the year is: 29.4 T or F In general, in a period of falling prices, LIFO produces hi...

Chapter 1 - Introduction to valuation Questions and Answers What is the fair market value - the standard definition? The fair market value is the cash equivalent value at which a willing and unrelated buyer would agree to buy and a willing and unrelated seller would agree would agree to sell the company, when neither party is compelled to act, and when both parties have reasonable knowledge of the relevant available information What are the valuation context characteristics? 1. Arms le...

Financial Statement Analysis and Valuation MC Questions and Answers Bally Corporation purchases an investment in Monte Carlo, Inc. at a purchase price of $7 million cash, representing 40% of the book value of Monte Carlo, Inc. During the year, Monte Carlo reports net income of $1,200,000 and pays $295,000 of cash dividends. At the end of the year, the market value of Bally's investment is $8.5 million. What is the year-end balance of the equity investment in Monte Carlo? The year-end balanc...

Valuation Financial Statements, ratio analysis, forecasting Questions and Answers Accounting measures past, not cash flows, not worth, now accurate, book value book value unlikely to reflect what assets could be sold for now and many assets that do not appear on balance sheet but positively impact future cash flows contribute to firm value market value to calculate current worth and if current operations add value than it will be greater than book value valuation timing...

Inventory Management, Valuation, and Financial Reporting Principles Questions and Answers Movement of Inventory Q For the year ended 31 October 20X3 a company carried out a physical count of inventory on 4 November 20X3, leading to an inventory cost at this date of £483,700. The following transactions took place between 1 November 20X3 and 4 November 20X3: (1)Goods costing £38,400 were received from suppliers. (2) Goods that had cost £14,800 were sold for £20,000. (3)A customer r...

Valuation Questions and Answers. liquidation valuation valuing a company's assets, assuming they are sold off and then subtracting liabilities to determine how much capital, if any, equity investors receive replacement value valuing a company based on the costs of replacing its assets LBO analysis Valuing a company by assuming the acquisition of the company via a leveraged buyout, which uses a significant amount of borrowed funds to fund the purchase, and assuming a required...