1.

a. What are the market based approaches in valuation. Describe each.

b. What are the advantages and disadvantages of the Market Based

approaches?

2. Financial Modelling Exercise

a. Secure an audited financial statement of a Philippine Listed company

b. Develop a financial model using electronic or manual spreadsheet, use

assumptions based on their Notes to Financial Statements, information

available in the market, or given information from your instructor.

c. Calculate for the following values:

i. Net Present Value of Free Cash flows available from the project

with scenarios on discount rate

ii. Net Present Value of Free Cash flows available to the Equity

shareholders

iii. Projected Market Value assuming the average P/E ratio in the

audited FS

iv. May apply market valu

e based approach