1. Which items on this list are part of the discounted cash flow?

a.	Revenue
	b.	Opex
	c.	Depreciation
	d.	Taxes

2. One of the challenges, or Cons, of the DCF methodology is that it is dependent on projection assumptions.

True

False

3. Mezzanine debt financing refers to financing that is somewhat intermediary between debt and equity, in that it commonly has equity components associated with it.

True

False

4. A good LBO candidate should have.

	a.	Large capital investment requirement
	b.	Strong asset base
	c.	High stock price if the candidate is publically traded
	d.	Strong cash flow generation ability