Question: fin 1 1. When performing a DCF in M&A, what value is being calculated? How long is the forecast period, typically? What is the terminal
1. When performing a DCF in M\&A, what value is being calculated? How long is the forecast period, typically? What is the terminal value? How are each calculated? 2. Notice footnote 3 on working capital (don't include excess cash and interest-bearing liabilities like n/p) 3. What is the WACC? 4. How is the cost of debt estimated? 5. How is the cost of equity estimated? What is the risk-free rate? What is the risk premium? What does Beta measure? 6. How is FCF calculated? 1. When performing a DCF in M\&A, what value is being calculated? How long is the forecast period, typically? What is the terminal value? How are each calculated? 2. Notice footnote 3 on working capital (don't include excess cash and interest-bearing liabilities like n/p) 3. What is the WACC? 4. How is the cost of debt estimated? 5. How is the cost of equity estimated? What is the risk-free rate? What is the risk premium? What does Beta measure? 6. How is FCF calculated
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