A1.

The Net Cash Flows are the amounts of cash available for distribution to equity
claim from the business or asset.
{
~TRUE
=FALSE
}

A2. For GCBO, the net cash flows generated will be based on Cash from Operations
which are composed of the cash flows from operating and investing activities, since
this represents already the amount earned or will be earned from the business and
the amount that is required for you to infuse in the operations to generate more
profit.
{
=TRUE
~FALSE
}

A3. There are three levels of Net Cash Flows: (1) Net Cash Flows to the Firm; (2)
Net Cash Flows to Creditors and (3) Net Cash Flows to Equity.
{
~TRUE
=FALSE
}

A4. The Net Cash Flows to Equity represents the amount of cash flows made available
to the equity stockholders after deducting the net debt or the outstanding
liabilities to the creditors less available cash balance of the company.
{
~TRUE
=FALSE
}

A5. Terminal Value represents the value of the company in perpetuity of a going
concern business.
{
=TRUE
~FALSE
}
A6. The net present value of the Net Cash Flows represents the value of the equity.
{
~TRUE
=FALSE
}

A7. Valuation is a sensitive and meticulous task for every analyst and investors.
{
=TRUE
~FALSE
}

A8. Information can also be considered as competitive advantage of a company or a

person.
{
=TRUE
~FALSE
}

A9. Audited Financial Statements are the most ideal reference for the future

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 performance of the company.
{
~TRUE
=FALSE
}

A10. The components of the Audited Financial Statements enable the analyst or the
financial modeler to assess the future of the company based on its past
performance.
{
=TRUE
~FALSE
}

A11. Statement of Income are used to determine the historical financial

performance.
{
=TRUE
~FALSE
}

A12. Statement of Financial Position is used to determine the market value of the
assets and the disclosed stakes of the debt and equity financiers.
{
~TRUE
=FALSE
}

A13. These are business opportunities that has long-term to infinite operational
period.
{
=a. Going Concern Business Opportunities
~b. Perpetual Business Opportunities
~c. Stable Business Opportunities
~d. Strategic Business Opportunities
}

A14. In determining the value of the equity value using discounted cash flows,
______________________ are comprised by activities based on operating and investing
activities, then adjusted by the financing activities to determine the
__________________, which is the basis for equity value.
{
=a. Net Cash Flows to the Firm; and Net Cash Flows to Equity
~b. Net Cash Flows to the Firm; and Net Cash Flows to Creditors
~c. Net Cash Flows to the Creditors; and (2) Net Cash Flows to
Equity
~d. None of the above since there are three levels of net cash flows.
}

A15. This represents the amount of cash flows made available to the equity
stockholders after deducting the net debt or the outstanding liabilities to the
creditors less available cash balance of the company.
{
~a. Net Cash Flows to the Firm
~b. Net Cash Flows to Creditors
=c. Net Cash Flows to Equity
~d. Operating Cash Flows
}

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