Question
7) How long is the typical DCF projection period? a. 3 years b. 5 years c. 1 year d. 30 years 6) Which of the
7) How long is the typical DCF projection period?
|
| a. | 3 years |
|
| b. | 5 years |
|
| c. | 1 year |
|
| d. | 30 years |
6) Which of the following is the most appropriate market risk premium to use in the calculation of cost of equity?
|
| a. | 0% - 1% |
|
| b. | 2% - 3% |
|
| c. | 10% + |
|
| d. | 6% - 7% |
4) Calculate the (increase) / decrease in net working capital from 2012 to 2013 based on the following assumptions. PLEASE NOTE THAT AN INCREASE IN NET WORKING CAPITAL IS PRESENTED WITH PARENTHESES AS ($XX.XX) AND A DECREASE IN NET WORKING CAPITAL IS PRESENTED WITHOUT PARENTHESES AS $XX.XX.
($ in millions) 2012 2013
Accounts Receivable $325.0 $350.0 Inventories $200.0 $210.0 Prepaid Expenses and Other $ 35.0 $ 45.0 Accounts Payable $300.0 $315.0 Accrued Liabilities $150.0 $160.0 Other Current Liabilities $ 60.0 $ 65.0
|
| a. | ($10.0) million |
|
| b. | $15.0 million |
|
| c. | ($15.0) million |
|
| d. | $10.0 million |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Bank Merger Wave
Authors: Gary Dymski
1st Edition
0765603829, 978-0765603821
