Question: 59. What is the downside to the DCF Valuation Method? Oltrelies on a tremendous number of assumptions. O It has an inherent bas for large
59. What is the downside to the DCF Valuation Method? Oltrelies on a tremendous number of assumptions. O It has an inherent bas for large companies and against small ones. It reduces advanced matike Newton Method to calculate. It causes dimate change Question 60 1.6 pts 60. How is sales flow forecast? For a public company industry average rowthis nedidaced by judgment factor of 2 to 4 For both public and private companies, consensus estimates of GoProwthis used. usted for eacted population growth reduced by adement factor of 2 to 4 for private company two or three years of consensus tales we used. After that. Historical growth rates we used reduced by ajudant factor of 2 to 4 Forum wo or three years of consensus se wed. After that historical growth rates are reduced by ment factor of 2 to 4 Question 61 1.6 pts 61. How are future COGS, Overhead (SGGA), Depreciation & Amortization, Capexand changes in Net Working Capital estimated? Historical testother with sales forecasts to esattamenti Wowmounts treated by GDP Consens estimates ut costs and Capes are waisle for public comanies the historical amounts omased by anon
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