Question: Question 9 l. Please decide whether the following statements are true or false. Please mark T, or F in the appropriate circle. T represents a
Question 9 l. Please decide whether the following statements are true or false. Please mark T", or F in the appropriate circle. "T" represents a true statement, and F" represents a false statement. When using the unlevered free cash flow discount model, we could calculate the terminal value by using the following formula: net profit for the final year of the projected period x appropriate P/E multiple a) b) When valuing a company using the DCF model, we could calculate the terminal value by using two methods: the multiple method and the Gordon growth method. 2. Companies A and B both have revenue of S100 and EV/Revenue multiples of 2.0x. However Company A has an EV EBITDA multiple of 5.0x, but Company B has an EV /EBITDA multiple of 8.0x. What is Company A's EBITDA? a. $40 b. $25 c. S50 d. $30 3. You are selecting a set of Public Company Comparables to value a potential client. What's the BEST method for selecting this set? a. Choose 30 companies across various industries and in various countries that are similar in size (market cap, revenue, or EBITDA) to your potential client. b. Select a set of 30 companies in your potential client's industry and country of varying size and profitability (market cap, revenue, or EBITDA). c. Pick a set of 6 companies in your target's industry and country that are similar in size (market cap, revenue, or EBITDA) to your target. d. Select one (1) company that is very similar to your potential client in terms of industry location, size, and profitability
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