1. In the Corporate Valuation model, the value of interest tax shields are captured by:

   a.

   Separately estimating the value of interest tax shields

   b.

   Assumes interest tax shields are zero

   c.

   Interest tax shields are included in the Free Cash Flows

   d.

   Using WACC which is on an after tax basis as the discount rate

   e.

   It is included in the Horizon or Terminal value

   1. Which of the following statements is corrrect?

      	a.	The corporate valuation model discounts free cash flow to equity by the weighted average cost of capital
      	b.	The interest tax shields are estimated separately in the flow to equity method
      	c.	The interest tax shields are discounted at the weighted average cost of capital in the APV model
      	d.	The interest tax shields are discounted at the unlevered cost of equity in the APV method
      	e.	The APV model assumes contstant capital structure