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True or False -The Business Profile of a firm contains important information such as the Business Sector, Products and Services, Geographic Area of operation and

True or False

-The Business Profile of a firm contains important information such as the Business Sector, Products and Services, Geographic Area of operation and Customers.

-The Adjusted Present Value (APV) model allows for a changing capital structure by focusing on the tax effects of the interest deduction separately from the cashflows to equity investors.

-When using a Comparable Analysis model (i.e. Market Comparables and/or Precedent Transaction Models) the result is on a specific day. We must still compound or discount that result to make a buy-sell-hold recommendation based on todays value.

-The Perpetuity Growth Method is used to assess a firms continuing value by forecasting the post-planning periods Equity Free Cash Flow and dividing that value by the weighted average cost of capital minus the growth rate.

-The Discounted Cash Flow model and the Economic Profit models answer different questions and both should be done for a complete picture of company and management performance.

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