When a company being valued is trading on the stock market, it is possible to compare your own estimated value of the company with what value of the company?

a.

Book value.

b.

Market value.

c.

Equity value.

d.

Asset value.

Clear my choice

Which of the following would not be undertaken when using the discounted cash flow model?

a.

Determining the present value of free cash flows.

b.

Forecasting free cash flow available to debt holders.

c.

Forecasting free cash flow available to equity holders.

d.

Deducting the beginning book value of assets from the ending book value of assets.

Clear my choice

The more practical approach to forecasting the financial statements of a company is to focus on projecting:

a.

Condensed financial statements.

b.

Detailed financial statements.

c.

Group financial statements.

d.

Cash financial statements.

Clear my choice

The Altman Z-score is used to assess:

a.

Bankruptcy.

b.

Credit risk.

c.

Default risk.

d.

Business risk.