Question: After completing your DCF valuation, you noticed the resulting Implied Equity Value per share is too low. Which of the following would increase the Equity
After completing your DCF valuation, you noticed the resulting Implied Equity Value per share is too low. Which of the following would increase the Equity Value per Share in your analysis?
1.Increase net debt amount
2.Increase the perpetuity growth rate for terminal value
3.Increase the debt weighting while calculating WACC
4.Decrease the companys beta
5.Employ the mid-year convention instead of discounting from year-end
1, 2, and 5
1, 3, and 4
2, 3, and 5
2, 3, 4, and 5
All of the above
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