The following are worksheet problems for the Valuation Online Course. These questions are designed to share practice based on the modules on Valuation. They are property of The middle Road except for questions from Aswath Damodaran. Solved answers to these questions are uploaded as a separate section after module 2 under the Valuation tab at The middle Road | tutorial section.
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Q1). This question is from Aswath Damodaran. The following are the projected cash flows to equity and the firm over the next five years. Cash flows to Equity $3946.50; Cash Flows CF to firm is $6000. Cost of Equity is 12% and the cost of capital is 9.94%.
Answer the following question.
a. What is the value of the equity in this firm?
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Question 2 of 6
2. Question
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Q2). This question is from the book Investment Valuation by Aswath Damodaran. The following are the projected cash flows to equity and the firm over the next five years. Cash flows to Equity $3946.50; Cash Flows CF to firm is $6000. Cost of Equity is 12% and the cost of capital is 9.94%. Answer the following question.
b. What is the value of the firm?
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Question 3 of 6
3. Question
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Q3: Earnings before interest and taxes for a firm is S$1000. Assume tax rate to be 15%. The equipment of the firm is depreciated over 5 years using straight line method. Assume this value to be S$500 and this is the second year of depreciation. The working capital last year was S$300 and this year is S$500. Calculate cash flow from operations. S$= Singapore Dollar. Input the answer as S$.
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Question 4 of 6
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Q3: See saw Toys reported it had a book value of equity of $1.5 billion at the end of 1998 and 100 million shares outstanding. During 1999, it bought back 10 million shares at a market price of $40 per share. The firm also reported a net income of $150 million for 1999, and paid dividends of 50 million. Estimate the following below. (Investment Valuation by Aswath Damodaran). Enter the answer using $.
1. The book value of equity at the end of 1999.
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Question 5 of 6
5. Question
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Q4: See saw Toys reported it had a book value of equity of $1.5 billion at the end of 1998 and 100 million shares outstanding. During 1999, it bought back 10 million shares at a market price of $40 per share. The firm also reported a net income of $150 million for 1999, and paid dividends of 50 million. Estimate the following below. (Investment Valuation by Aswath Damodaran). Answer in percentage.
2. The return on equity, using beginning book value of equity.
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Question 6 of 6
6. Question
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Q5: See saw Toys reported it had a book value of equity of $1.5 billion at the end of 1998 and 100 million shares outstanding. During 1999, it bought back 10 million shares at a market price of $40 per share. The firm also reported a net income of $150 million for 1999, and paid dividends of 50 million. Estimate the following below. (Investment Valuation by Aswath Damodaran).
Correct
Incorrect
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