Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Here is a sensitivity table from Canaccord's valuation of Dreamscape Networks: Sensitivity (EV) 0.3 2.0% 2.5% 3.0% 3.5% 4.0% Source: Company Reports, Canaccord Genuity

image text in transcribed

Here is a sensitivity table from Canaccord's valuation of Dreamscape Networks: Sensitivity (EV) 0.3 2.0% 2.5% 3.0% 3.5% 4.0% Source: Company Reports, Canaccord Genuity estimates Select one: Discount rate (WACC, Ke:15%, Kd:5%) Terminal Growth rate (%) 9.8% 0.47 0.49 0.52 0.54 0.58 Which of the following statements is NOT correct? The model-estimated share price: 11.8% 0.39 0.40 0.41 0.43 0.45 O a. Rises as the WACC falls. O b. Rises as the terminal value growth rate rises. O C. Is 0.3 based on Canaccord's DCF valuation. O d. Gives a negative share price when the WACC is more than the terminal value growth rate. 13.8% 15.8% 0.33 0.29 0.34 0.30 0.35 0.31 0.36 0.31 0.37 0.32 17.8% 0.27 0.27 0.27 0.28 0.28

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Lets analyze this sensitivity table The table shows how the modelestimated enterprise value EV per s... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Statistics for Contemporary Decision Making

Authors: Ken Black

6th Edition

978-0470409015, 9780470559062, 470409010, 470559063, 978-0470910184

More Books

Students also viewed these Accounting questions

Question

What does the slope in a simple linear regression model measure?

Answered: 1 week ago