Which of the following is incorrect?

Question 30 options:

A)	DCF is also referred to as the "perpetuity" or intrinsic model.

B)	The two stage framework for valuation is derived from the fundamental analysis of the company's cash flow generation potential.

C)	Multiples are also referred to as "Comps" or relative valuation models.

D)	For the model results to be correct, both the DCF and the Multiples results must be equal.

Which of the following statements is false when discussing valuation methodology?

Question 32 options:

A)	Terminal values can be determined using DCF or Exit Multiples

B)	The cost of equity requires data on betas, market equity risk premiums and the risk free rate of return.

C)	Because the terminal value is a long-term projection, it has minimal impact on the final valuation of the firm.

D)	Unlevered free cash flows are annual cash flows freely available to all providers of capital in the business, after accounting for all necessary reinvestments.

How does net income differ from operating profit?

Question 37 options:

A)	Operating profit includes interest expense and net income does not.

B)	The difference is the amount of tax expense.

C)	Net income represents the firm's profit after consideration of all revenue and expense reported for an accounting period, whereas operating profit only considers sales revenue and cost of goods sold.

D)	Operating profit is calculated before interest expense, other income or expenses, and taxes, whereas net income includes all of those items.

Which of the following produces an incorrect observation?

Question 42 options:

A)	A higher NOPAT, will typically result in a higher the return on invested capital.

B)	The tax shield for NOPAT calculations is based on non-operating items from the income statement.

C)	The tax shield for NOPAT calculations is subtracted from the total tax expense to determine the tax on operating results.

D)	All of the answers are correct.

E)	The operating tax is subtracted from operating income to determine NOPAT.