Explain why the discounted cash flow analysis (DCFA) approach to value the operating firm is considered the “gold standard” of valuation.
What will be an ideal response?
The DCFA approach is the only one that can capture the intricacies of how the firm generates cash flow and net income. The model can be robust enough to capture the way the firm “works” that spans not only today’s cash flows, but anticipated cash flows given the firm’s outlook. The NAV and relative value approaches give a valuation figure based only on data at only one specific point in time. For instance, NAV will be based on what the assets are worth now, without any consideration for their future worth. Relative value is also based on a figure (EBITDA, net income) at one particular point in time.
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Use the equation presented below to answer the question that follows: Cash = CL + LTL + CS + RE – NCCA – LTA where: CL = Current liabilities LTL = Long-term liabilities CS = Common stock RE = Retained earnings NCCA = Noncash current assets LTA = Long-term assets Which of the following activities results in a cash outflow?
a. Decreases in noncash current assets (NCCA) b. Decreases in long-term assets (LTA) c. Increases in long-term liabilities (LTL) d. Decreases in retained earnings (RE)
Discuss the Miller test to determine if a creative work is obscene
Which of the following sequences is the normal sequence of flow of accounting data?
A) Ledger ? Journal ? Source document B) Journal ? Source document ? Ledger C) Source document ? Journal ? Ledger D) Source document ? Ledger ? Journal
The conceptual phase of any system or just the software facet of a system best describes the SDLC
A) preliminary design phase. B) analysis phase. C) systems investigation phase. D) launch phase.