Merchant & Investment Banking

Quiz 3 – Part B

Closed Book Duration 40 minutes

Total 20 marks

IMPORTANT INSTRUCTIONS

Please write your answers in a sheet, scan the sheet and email the scanned answers to my email id
with subject line as MIB – Quiz 3 – Part B. Name the file with your first name followed by Quiz 3
Part B.

Please ensure that your images come properly – not inverted etc.

Please also upload your answers in the provision to upload assignments in COLLPOLL.

I’ll use whichever is more convenient to access.

Please do not send your files through whatsapp.

1. Explain briefly the following : 3 X 5 = 15 marks

a. Precedent Transaction Analysis in the context of valuation of firms in M&A
transactions
b. Enterprise Value in the context of valuation of firms
c. Valuation using Multiples
d. Free Cash Flow to Equity
e. Terminal Value in DCF method of valuation of firms

2. Explain the similarities and differences between valuation of assets and valuation of firms
using DCF method.
5 marks