Circle your choice clearly 1. In class, in estimating free cash flows for IT Staffing, for the forecasted years, working capital was calculated as (expected sales in the year x average percent of working capital in sales in the past years). a. True b. False 2. For DCF valuation, sales forecasts should be done by sales department of the case firm, but for the IT Staffing, forecasted sales were provided. a. True b. False 3. In class, in DCF valuation of IT Staffing, terminal value (i.e., IT Staffing's firm value in four years) was estimated using multiples valuation method as follows: EBITDACompMVICComp (Now = in 2011) =EBITDACaseMVICCase( in 2015) MVICCase=EBITDAMVICCompEBITDACase=8.7753=464.81, where median multiple of the five comparable companies is 8.77 and forecasted EBITDA of It Staffing for 2015 is 53. a. True b. False 4. In class, in DCF valuation of IT Staffing, for simplicity, most comparable companies' median WACC was used as a discount rate. a. True b. False 5. In class, to get the possible range of firm values of IT Staffing, the sensitivity analysis using 1) range of multiples and 2) range of possible WACCs were used. This will result possible firm values of case company. a. True b. False