6. Which of the following is not necessary to estimate free cash flows? a. EBIT b. WACC (weighted average cost of capital) c. Change in net working capital d. Capital expenditure 7. Which of the following is not used in estimating firm value today of IT Staffing using DCF valuation? a. Present values of free cash flows next four years b. Firm value in four years c. WACC d. Debt Value 8. Which of the following is not true about the data given from IT Staffing? a. Estimated EBITDA for the next fours years are given from the board of IT Staffing. b. Capital expenditure for the next four years are given. c. Debt value is given d. Equity value is given 9. Which of the following is not true about IT Staffing case? a. Tax amounts for the next four years are given b. Capital expenditure for the next four years are given c. Change in net working capital for the next four years are given d. Terminal value (i.e., firm value in four years) was estimated using multiples valuation method. 10. In class, which of the following is used for IT Staffing valuation using DCF valuation method? a. Firm Value =(1+WAC)1FCF2012+(1+WACC)2FCF2013+(1+WACC)2FCF2016+(1+WACC)4TV2013 b. Firm Value =(1+WACC)1FCF2013+(1+WACC)2FCF2014+(1+WACC)3FCF2015+(1+WACC)4TV2015 c. Firm Value =(1+WACC)1FCF2012+(1+WACC)2FCF2013+(1+WACC)3FCF2014+(1+WACC)4FCF2015+(1+WACC)4TV2015 d. Firm Value =(1+WACC)1FCF2012+(1+WACC)2FCF2013+(1+WACC)3FCF2014+(1+WACC)4FCF2015+(1+WACC)3TV2015