24) Which variable generally represents the majority of a DCF valuation? A. CAPM B. Beta Details Terminal Year EBITDA 1,200 Industry growth rate 2% Exit multiple 7x WAAC 17% Details FCF $200.0 WAAC 8%

C. WAAC D. Terminal value 25) When determining a terminal value for a cyclical company, the banker must make sure that: A. Earnings are normalized B. Earnings are at a cyclical high C. Earnings are at a cyclical low D. The perpetuity growth method is used 26) If a DCF is constructed on the basis of EBIT or EBITDA, what must be driven as a percentage of sales? A. COGS B. SG&A C. Net working capital D. D&A 27) All of the following assets can be amortized EXCEPT: A. Copyrights B. Patents C. Goodwill D. PP&E 28) Which of the following is a true statement about capital expenditures? A. They represent actual cash outflows B. They represent theoretical cash outflows C. They represent intangible assets D. They are expenses