12) What is inventory divided by to obtain DIH? A. COGS ($ in millions) Details A/R $10.0 A/P 30.0 Sales 500.0

B. Sales C. Accounts Receivable D. Gross Profit 14) When there is no debt in the capital structure, what is WAAC equal to? A. Cost of debt B. Debt-to-total capitalization ratio C. Equity-to-total capitalization ratio D. Cost of equity 15) What happens to WAAC as the proportion of debt in a capital structure increases? A. It stays the same B. It decreases C. It increases D. It depends 16) What is used to calculate the expected return on a companys equity? ($ in millions) Details Long term debt $100.0 Total equity 3600.0

A. FCF B. CAPM C. DCM D. EEM

22) Calculate the discount factor for $1.00 received at the end of one year, assuming a 12% discount rate. A. .80 B. .95 C. .87 D. .89 24) Which variable generally represents the majority of a DCF valuation? A. CAPM B. Beta Details Terminal Year EBITDA 1,200 Industry growth rate 2% Exit multiple 7x WAAC 17% Details FCF $200.0 WAAC 8%

C. WAAC D. Terminal value 25) When determining a terminal value for a cyclical company, the banker must make sure that: A. Earnings are normalized B. Earnings are at a cyclical high C. Earnings are at a cyclical low D. The perpetuity growth method is used 26) If a DCF is constructed on the basis of EBIT or EBITDA, what must be driven as a percentage of sales? A. COGS B. SG&A C. Net working capital D. D&A 27) All of the following assets can be amortized EXCEPT: A. Copyrights B. Patents C. Goodwill D. PP&E 28) Which of the following is a true statement about capital expenditures? A. They represent actual cash outflows B. They represent theoretical cash outflows C. They represent intangible assets D. They are expenses