->

>
Advanced
10

Interview Questions on

valuations.
-
 ->
①
How do you calculate the

diluted number of
fully
outstanding shares
-
Read about Measury
stock

method
- -

a cons.
-
Also elaborate;its pros

-
The valuation school-
 ->
② How do you calculate
Equity
value from Enterprise
value?
-
The Answer should be awless"

Equity =
Interprise -
Net minority
value value Debt t

pref value of
+

stock non operating

Asset

-
The Valuation school-
 ->
③ What are share
buybacks;
in which circumstances its appropriate;
what's the Impact on share
prices
financial statements?
buyback related concepts
-

prepare
well.
really
could
There be
good grilling
-

during the Interview.

-
The valuation school-
 ->

④ why company prefer to repurchase

the share over issuance of
dividends?
-
State diff
tax implications.
- state about market perception
on dividend UIS Buyback

-
The valuation school-
 ->

⑤
when using sum of the Part
(SOTP) method would be appropriate
to value a
company?
-
Divisions in the company is clearly
identifiable.

division have unique risk &

Each
=

return profile

-
The Valuation school-
 ->
⑥ How valuing private company
is different the valuing a
public
company?
-

Availability
of data

lack of liquidity

3
-

lack of
transparency
explain
-

Risk in detail.
-

key person

- calculation of Beta.
-
The valuation school-
 -
⑦
How is Terminal value

calculated?
Explain
-

Growth in perpetuity Approach.

- Exit multiple Approach

-
The valuation school-
 &
⑧ What is purpose of mid year
convention in a pot model?
-
If not used; we are
assuming
thatall cash flows are
being
received at the end of the
year.

-
The valuation school-
⑨ How should
operating ceases

be treated in DCF
valuation?
- Read more about this

- should convert operating lease

into financial lease.

-
The valuation school-
 ->

⑩ How does lower tax rate

impact the valuation from DCF?

-

Higher cash flows (& valuations

-

higher cost
of Debt It valuations
-
Higher Beta It valuation)

-
The valuation school-
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-

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