The analyst at Silverpond tasked with estimating the enterprise value of DDC using a DCF model should make which of the following adjustments (select all that apply):

		Use the expected WACC at the end of the projection when calculating the PGM.
		Adjust for the cash balance in the final year of the projection because no dividends were assumed and a substantial increase in cash is projected.
		Adjust for the cash balance in the year the projection starts.
		Exclude expected CapEx in the final projection year when calculating TV-PGM.
		Include expected CapEx in the final projection year when calculating TV-PGM.Include expected CapEx in the final projection year when calculating TV-PGM.
		Adjust the WACC to reflect the pro-forma effect of the debt used to fund Silverlake's purchase.

The Silverpond IC is now debating whether to structure the purchase of DDC as a stock purchase or an asset acquisition. A number of partners are expressing arguments on both sides of the issue. Based on the discussion in class and without bringing any other knowledge you may have to bear, select all the statements that are false.

		The immediate transaction related tax liability to Silverpond would be the same for either the stock or asset purchase.
		The stock purchase would be simpler to structure from a legal standpoint.
		The asset purchase would result in more depreciation expense.
		The stock purchase would ensure that DDC's critical license of its AI-software from Plaintar remains intact.
		The asset purchase would result in more capital gains tax liability for DDC.
		The asset purchase would shield the firm from any liabilities associated with a breach of the Plaintar license.

At the Silverpond IC meeting to approve the DDC acquisition, the partner proposing the acquisition made multiple arguments that DDC represented a good roll-up opportunity. Based on all the facts and circumstances that are thus far known and/or can be reasonably inferred, pick the argument that is least likely to be true.

		There were lots of drone startups and the DDC platform could be used to build out a company with a broad menu of product offerings and national distribution.
		There were potentially significant cost synergies in terms of R&D expense as well as raw material inputs (e.g. electric engines, batteries).
		A roll-up would allow the resulting company to afford superior management and engineering talent.
		A roll-up would facilitate economies of scale marketing/branding investments.
		A roll-up would benefit from multiple arbitrage.