1. EBIT is

a. Revenue

b. Gross Profit

c. Operating Income

d. Net Income

2. Cash Flow Proxy can be

a. Revenue

b. Gross Profit

c. Operating Income

d. Net Income

Given, in a 5-year NPV model:

Cash Flow Year 5 = USD 205 million

Growth Rate = 10%

Stable Growth Rate = 3%

Discount Rate = 8%

3. What is the Terminal Value?

a. USD 45.1 million

b. USD 410 million

c. USD 450 million

d. USD 4,510 million

e. None of the above

4. A corporate financial analyst working in the Eurozone has created a 10-year NPV model, with a Discount Rate of 10%. The Terminal Value is calculated to be EUR 6,080 million

What is the Present Value of the Terminal Value?

a. EUR 2,131 million

b. EUR 2,344 million

c. EUR 15,770 million

d. EUR 17,347 million

e. None of the above