Using EBITDA to calculate terminal value is beneficial because: A. risks of cash flows do not change over time. B. it ties the analysis of distant eash flows back to recent market transactions involving similar firms. C. company-maintains a steady capital structure. D. it decomposes total enterprise value into value from unlevered equity free cash flow and value from financing. - 10. A private equity firm is: A. prepared in accordance with a set of reporting guidelines called generally accepted accounting principles or GAAP. B. an improvement over traditional WACC approaches because it reveals how the compuny's financing decisions influence enterprise value C. a financial intermediary that is involved in raising pools of capital to invest in compunies that need financing D. investmenting the firm has made in assets that are unrelated to the firm's primary business. 11. Venture Capital investor usually determines the ROR in: A. WACC B. Hoped-for Return C. Market retum D. Mean return - 12. Which one is not a stage in the life cycle of the firm: A. Early stage capital B. Social Capital - C. Seed Capital D. Restructuring or Reorganization Capital 13. Financial derivatives: A. securities whose value is derived from the value of another security or asset. B. is defined as the average of the estimated required rates of return for the firm's interestbearing debt. C. assumes constant capital structure, if this does not exist (i.e. LBO) analyst should apply AP model. D. determine the weights that are to be used for the components of the firm's capital structure