1. What are some of the fundamental differences between accounting and finance?

2. When financial analysts talk about firm value or market value, what views do they take? What are the differences between these views?

3. What are different valuation methods are there? Describe some of their fundamental features.

4. What is the intuition behind multiples or comparables valuation? What are the advantages of this method?

5. What assumptions and limitations does multiples valuation have? Quantitative Questions (Berk (2018), Chapter 10) 1.

Problem 9 You notice that Cisco Computer Systems has a share price of $30.72 and earnings per share of $0.52. Its competitor Hewlett-Packard has earnings per share of $0.36. What is one estimate of the value of Hewlett-Packard shares? 2.

Problem 10 CSH has EBITDA of $5 million. You feel that an appropriate enterprise value/EBITDA ratio for CSH is 9. CSH has $10 million in debt, $2 million in cash and 800 000 shares outstanding. What is your estimate of CSHs share price?