Intro to Business Valuation 1//CFt

Respondent Short Analysis Assessment INTROTOBV-LMS

Email Address: z.nauaf@gmail.com

Full Name: Nawaf Alzahrani
Respondent ID: 41354
Date Started: 03/02/2024 04:50:44 PM
Date Completed: 03/02/2024 08:19:15 PM
Attempt:
Total questions: 20
Total answered questions: 20

Questions Group
1. Valuation Techniques An important skill for a financial analyst is to understand the 5% 5% CORRECT
impact the different types of valuation and when it is appropriate to use these
techniques. Which of the following is NOT one of the valuation techniques discussed
in this course?
2. Valuation Techniques - Intrinsic vs Relative Valuationlt's important for a financial 5% 5% CORRECT
analyst to understand the main differences between intrinsic and relative
valuation. Which of the following are differences between intrinsic and relative
valuation? Select ALL that apply.
3. Enterprise Value vs Equity Value - Calculating Net DebtAn analyst must properly 5% 0% INCORRECT
calculate a company's net debt when performing an unlevered free cash flow
valuation.Open the attached Excel file found above the question and go to the
worksheet labeled: Net Debt (Blank)Calculate the company's current net debt given
the information in the Excel file.
4. Enterprise Value vs Equity Value - Calculating Enterprise Value An analyst must be able 5% 0% INCORRECT
to use publicly available data to calculate a company's enterprise value. Open the
attached Excel file found above the question and go to the worksheet
labeled: Enterprise Value (Blank) Calculate the company's current enterprise value
given the information in the Excel file.

5. Enterprise Value vs Equity Value - Advantages & Disadvantages Calculating either 5% 5% CORRECT
enterprise value or equity value has both advantages and disadvantages.Which of the
following is a disadvantage of enterprise value?
6. Numerator/Denominator Consistency - Valuation Consistency An analyst must be 5% 0% INCORRECT
mindful of maintaining appropriate numerator/denominator consistency, regardless
of whether they are performing a relative or intrinsic valuation.Which of the following
equations or multiples maintains appropriate numerator/denominator consistency?
Select ALL that apply.
7. Discounted Cash Flow Valuation - Calculating Enterprise Value A discounted cash flow 5% 0% INCORRECT
can be used to calculate either enterprise value or equity value. Open the attached
Excel file found above the question and go to the worksheet labeled: EV
(Blank) Calculate the company's enterprise value at the end of Year O given the
information in the Excel file. Assume end-of-period-discounting.
8. Discounted Cash Flow Valuation - Calculating Unlevered Free Cash Flow Knowing how 5% 0% INCORRECT
to properly calculate unlevered free cash flows is an essential step when performing a
valuation. Open the attached Excel file found above the question and go to the
worksheet labeled: UFCF-NI (Blank)Using the net income approach to calculating
unlevered free cash flows, calculate the company's unlevered free cash flows in Year 4.
9. Discounted Cash Flow Valuation - Calculating Equity Value Knowing how to perform an 5% 5% CORRECT
unlevered DCF and calculate equity value is an essential skill for a world-class
analyst. Open the attached Excel file found above the question and go to the
worksheet labeled: Equity Value (Blank) Calculate the company's equity value at the
end of Year O given the information in the Excel file. Assume end-of-period-
discounting.
10. Cost of Capital - Cost of Debt Cost of debt is one of the main inputs when calculating 5% 0% INCORRECT
the weighted average cost of capital.Which of the following is the correct cost of debt
in the weighted average cost of capital calculation?
11. Cost of Capital - Cost of Equity Cost of equity is one of the main inputs when 5% 5% CORRECT
calculating the weighted average cost of capital. Open the attached Excel file found
above the question and go to the worksheet labeled: Cost of Equity (Blank)
Calculate the company's cost of equity given the information in the Excel file.
12. Cost of Capital - BetaBeta is used to calculate the cost of equity. Understanding and 5% 5% CORRECT
interpreting beta is essential when valuing a company.Which of the following is the
most correct statement as discussed in the course?
13. Cost of Capital - Weighted Average Cost of Capital In order to perform a valuation 5% 5% CORRECT
using unlevered free cash flows, it's important to correctly calculate the weighted
average cost of capital (WACC). Open the attached Excel file found above the
question and go to the worksheet labeled: WACC (Blank) Calculate the
company's WACC given the information in the Excel file.
14. Terminal Value - Perpetuity Growth Method A DCF is typically made up of two stages: 5% 0% INCORRECT
1) a discrete forecast period and 2) a terminal value. Open the attached Excel file
found above the question and go to the worksheet labeled: Perpetuity Growth
(Blank)Using the perpetuity growth method, calculate the present value of the
terminal value at the end of Year 0. Assume end-of-period-discounting.
15. Terminal Value - Terminal Multiple Method A DCF is typically made up of two stages: 5% 0% INCORRECT
1) a discrete forecast period and 2) a terminal value. Open the attached Excel file
found above the question and go to the worksheet labeled: Terminal Multiple
(Blank) Using the terminal, or exit, multiple method, calculate the present value of the
terminal value at the end of Year 0. Assume end-of-period-discounting.
16. Relative Valuation - Advantages and DisadvantagesRelative Valuation has several 5% 5% CORRECT
advantages as a valuation technique.Which of the following are advantages when
performing a relative valuation? Select ALL that apply.
17. Comparable Company Valuation - Calculating Equity Value per ShareComparable 5% 5% CORRECT
company valuation is one of the most used valuation methodologies and a "sanity
check" against a DCF valuation.Open the attached Excel file found above the
question and go to the worksheet labeled: EV to EBITDA (Blank) Using the
median EV/EBITDA multiple of the given peer companies, calculate the Target
Company's expected equity value per share.
18. Comparable Company Valuation - Calculating Enterprise ValueComparable company 5% 5% CORRECT
valuation is one of the most used valuation methodologies and a "sanity check"
against a DCF valuation.Open the attached Excel file found above the question and
go to the worksheet labeled: Price to Earnings (Blank) Using the average P/E multiple
of
the given peer companies, calculate the Target Company's implied enterprise value.
19. Precedent Transaction Valuation - Selecting Relevant TransactionsPrecedent 5% 5% CORRECT
transaction valuation is especially important in the context of mergers and
acquisitions, and as such, has a few more considerations compared to comparable
company valuation. Which of the following are correct statements according to our
material? Select ALL that apply.
20. Precedent Transaction Valuation - Calculating the Implied Control 5% 0% INCORRECT
Premium Acquisitions of public companies are usually at a control premium to induce
the target company shareholders to sell. Open the attached Excel file found above the
question and go to the worksheet labeled: Control Premium (Blank) Using the Median
EV/EBITDA multiple, what is the hypothetical control premium for the Target
Company's stock?
55%

Time Used: 00:48:41

Score Percentile: 39

Overall Result Fail

Final Score: 55%