Question 1 1 pts After a firm conducts a share buyback, there are fewer shares outstanding, and the firm no longer has the cash used to fund the buyback. O True O False Question 2 1 pts Pick all statements below which are generally true regarding the Multiples method of valuing a company. a) Comps should have names similar to the company of interest. b) EV/Sales is an appropriate multiple. c) Comps should have similar CAPM betas. d) Comps should have similar stock prices. O a only Ob only a and b Ob and c O cand d O a, b, and c O b, c, and d O all are generally true Question 6 1 pts Here are three firms similar to Duck Co. along with their multiples data. EV/EBITDA EV/Sales 2.2 Comp X Comp Y Comp Z 19.7 10.2 15.1 1.3 1.4 Duck Co. has current sales of $450 million, EBITDA of $39 million, $11 million in cash, $100 million in debt, and 18.5 million shares outstanding. Which of these is closest to your best estimate of Duck Co's stock price? $30 $50 O $70 $90 O $110 Question 7 1 pts Which of these is the weakest reason to prefer using the Discounted Cash Flow Method over the Multiples Method to value firm A which operates in industry B? O There is no rush to arrive at an answer. 0 You believe the other firms in industry B are generally valued by the market at less than their true worth. O You think you can accurately project firm A's future cash flows. O There are many public firms in industry B similar to firm A. Question 1 1 pts After a firm conducts a share buyback, there are fewer shares outstanding, and the firm no longer has the cash used to fund the buyback. O True O False Question 2 1 pts Pick all statements below which are generally true regarding the Multiples method of valuing a company. a) Comps should have names similar to the company of interest. b) EV/Sales is an appropriate multiple. c) Comps should have similar CAPM betas. d) Comps should have similar stock prices. O a only Ob only a and b Ob and c O cand d O a, b, and c O b, c, and d O all are generally true Question 6 1 pts Here are three firms similar to Duck Co. along with their multiples data. EV/EBITDA EV/Sales 2.2 Comp X Comp Y Comp Z 19.7 10.2 15.1 1.3 1.4 Duck Co. has current sales of $450 million, EBITDA of $39 million, $11 million in cash, $100 million in debt, and 18.5 million shares outstanding. Which of these is closest to your best estimate of Duck Co's stock price? $30 $50 O $70 $90 O $110 Question 7 1 pts Which of these is the weakest reason to prefer using the Discounted Cash Flow Method over the Multiples Method to value firm A which operates in industry B? O There is no rush to arrive at an answer. 0 You believe the other firms in industry B are generally valued by the market at less than their true worth. O You think you can accurately project firm A's future cash flows. O There are many public firms in industry B similar to firm A
