a. What financial metrics are used in a M&A analysis? What is the difference between comparable companies and comparable transactions? Discuss the important variables to consider when comparing two M&A transactions?

b. What are the major benefits of DCF analysis? Explain the four variables studied in the analysis? How far out (# years) should annual cash flows be forecasted? How can we avoid undue optimism in cash flow projections?

c. Explain the three primary ways of estimating a firm's terminal value? What is sensitivity analysis and why is it important? Explain the three international standards for valuation?