Which of the following is not commonly used in discounted cashflow valuation to calculate the value of the firm?
| a. | Dividends. |
| b. | Free Cash Flow to the Firm. |
| c. | Free Cash Flow to Equity. |
| d. | Share Buy Backs |
Which of het following adjustments would you make aftercalculating the value of the firm to get to the value ofequity?
| a. | Subtract the value of debt. |
| b. | Subtract capital expenditures on new projects. |
| c. | Subtract the expected liabilities from any lawsuits. |
| d. | Subtract any unfunded pension and health care obligations. |
Regardless of the choice of cash flows, the process ofestimating the firm valuation requires some common inputs. Which ofthe following is not one of those inputs?
| a. | The future cost of debt. |
| b. | The estimated cash flows during the high growth period. |
| c. | A discount rate that corresponds to the cash flows. |
| d. | An estimation of the terminal value. |
If you are using free cash flow to the firm in the firmvaluation model, the correct discount rate is ...
| a. | the cost of equity. |
| b. | the risk free rate. |
| c. | the cost of debt. |
| d. | the weighted average cost of capital. |
When using the firm valuation model, the present value of thecash flows from the end of the quick growth period to infinity iscalled?
| a. | The constant growth value. |
| b. | The final value. |
| c. | The last value. |
| d. | The terminal value. |
