Fill in the highlighted cells in the table. Answer [must exactly match option in Question choice set, so copy 8: paste from group 2 of possibilities is suggested] 3 Is the following statement true or false? Enterprise value is based on all assets and all liabilities. 1 Which term is used to describe approaches that estimate the value of a firm [or its equity] as the present value of 5 4 expected cash flows? Which term is used to describe approaches that estimate the value of a firm [or its equity] by identifying the l? 5 relationship between market value and a financial measure? 6 Which 2 of the 5 most common multiples involve measures that best reflect operating activities and performance? 8 7 Which 2 of the 5 most common multiples are most widely used by analysts for valuations? ll 8 Among analysts, managers, 81 lenders, which, if any, often have an incentive to overvalue firms? 1 9 Is the following statement true or false? Market comps valuation is a relatively difficult methodology to use 0 10 Is the following statement true or false? Market comps analysis involves intrinsic valuation 29 11 Which type of financial figures are easier to obtain and more difficult to manipulate in market comps analysis? 0 What term, popularized by Warren Buffet, refers to a business' ability to maintain competitive advantages over its 34 12 competitors in order to protect its longterm profits and market share from competing firms? Is the following statement true or false? EW'EBITDA is a more popular multiple than EVIEBIT, and EVIEBITDA is always 33 13 a superior multiple to E'WEBIT Which of the 5 most common multiples can be used to value many firms because the book value assets often exceeds 34 14 the book value of liabilities? 15 Is the following statement true or false? The quality of a firm's management is relevant to valuing a firm 35 Firms A, B, 81 C have all just published buy recommendations of Firm X. Firm A's report has poorly done analysis and no discussion of why the market is wrong in its evaluation of Firm X. Firm B's report has very well done analysis and no discussion of why the market is wrong in its evaluation of Firm X. Firm C's report has very well done analysis and a 0 discussion of why the market is wrong in its evaluation of Firm X. Which firm or firms have reports that meet the 16 minimum standards for being persuasive? Which of the 5 most common multiples is intuitively appealing, because it involves a measure that reflects the bottom 36 17 line? 18 Is the following statement true or false? DCF analysis involves intrinsic valuation 34 Under what conditions involving risk, growth, and management quality for a firm, should a peer multiple be adjusted 39 19 down to get a more appropriate pricing multiple for a particular firm? 20 Which of the 5 most common multiples is especially useful for valuing relatively young firms? 0 Which of the 5 most common multiples can be used to value the greatest number of firms? 50 21 Enter the following Enter the following number if ... ... the answer to the question is ... number if ... ... the answer to the question is ... 0 FALSE 32 EV/EBITDA TRUE 33 EV/EBIT N Core measures 34 EV/sales Core valuation 35 P/E Discount measures 36 P/B Economic moat 37 EV/EBITDA and EV/EBIT 6 Enduring source 38 EV/EBITDA and EV/sales 7 Forecast measures 39 EV/EBITDA and P/E Intrinsic valuation 40 EV/EBITDA and P/B Protective advantage 41 EV/EBIT and EV/sales 10 Pure valuation 42 EV/EBIT and P/E 11 Relative valuation 43 EV/EBIT and P/B 12 Traditional measures 44 EV/sales and P/E 13 Trailing measures 45 EV/sales and P/B 14 Warren Plus Factor 46 P/E & P/B More risk, higher growth, and better 15 Wedge profit generator 47 management 16 Analysts, managers, and lenders 48 More risk, higher growth, and worse management More risk, lower growth, and better 17 Analysts and managers, but not lenders 49 management Analysts and lenders, but not managers 50 More risk, lower growth, and worse 18 management ess risk, higher growth, and better 19 Managers and lenders. but not analysts 51 26 (+