In a DCF analysis, what is used to capture the remaining value of the target beyond the projection period?

Intrinsic value

Terminal Value

WACC

Enterprise Value

How does a decrease net working capital affect FCF?

Overstates FCF

Does not affect FCF

Understates FCF

It depends

Question 3

1. Identify the following formula.

   FCFn x (1+g) / (r - g)

   		CAPM
   		DCF
   		PGM
   		EEM

What happens to WAAC as the proportion of debt in a capital structure increases?

It stays the same

It decreases

It increases

It depends

In a DCF analysis, the target's projected FCF and terminal value are discounted to the present and summed to calculate the target's:

		Enterprise value
		Market cap
		Equity value
		Current value