标题: Reading 43: Free Cash Flow Valuation-LOS k 习题精选 [打印本页]
作者: 土豆妮 时间: 2011-3-18 15:18 标题: [2011]Session 12-Reading 43: Free Cash Flow Valuation-LOS k 习题精选
Session 12: Equity Investments: Valuation Models
Reading 43: Free Cash Flow Valuation
LOS k: Explain the use of sensitivity analysis in FCFF and FCFE valuations.
A firm has:
- Free cash flow to equity = $4.0 million.
- Cost of equity = 12%.
- Long-term expected growth rate = 5%.
- Value of equity per share = $57.14 per share.
What will happen to the value of the firm if free cash flow to equity decreases to $3.2 million?> >
|
A) |
The value will decrease. | |
|
B) |
There is insufficient information to tell. | |
|
C) |
The value will increase. | |
Everything else being constant, a decrease in free cash flow to equity should decrease the value of the firm.
[此贴子已经被作者于2011-3-21 11:28:30编辑过]
作者: 土豆妮 时间: 2011-3-18 15:19
A firm has:
- Free cash flow to the firm = $4.0 million.
- Weighted average cost of capital = 10%.
- Total debt = $30.0 million.
- Long-term expected growth rate = 5%.
- Value of the firm = $50.00 per share.
What will happen to the value of the firm if the weighted average cost of capital increases to 12%?> >
|
A) |
The value will remain the same. | |
|
B) |
The value will increase. | |
|
C) |
The value will decrease. | |
Everything else being constant, an increase in the relevant required rate of return should decrease the value of the firm.
作者: 土豆妮 时间: 2011-3-18 15:19
A firm has:
- Free cash flow to equity = $4.0 million.
- Cost of equity = 12%.
- Long-term expected growth rate = 5%.
- Value of equity per share = $57.14 per share.
What will happen to the value of equity if the cost of equity decreases to 10%?> >
|
A) |
There is insufficient information to tell. | |
|
B) |
The value will increase. | |
|
C) |
The value will decrease. | |
Everything else being constant, a decrease in the relevant required rate of return should increase the value of the equity per share.
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