QP of Financial Modelling - Prof. Sameer Gunjal

MULTIPLE CHOICE SINGLE CORRECT ITEM TEMPLATE
Input Language English

Course Name :
Item Bank ID 35073
No. of
Difficulty Level Author Options Item Text
(Low-1,Medium- (4 Only)
2,High -3)
If Accounts receivable for Y-1 = 150, Y-2 = 200, and Sales
1 Sameer Gu 4 for
Lastthe Y-2 isrevenue
5 years 3000, what
for awould be are
business the Y-1
value= of Days
100, Y-2Sales
=
Outstanding (a.k.a Average Collection Period) for Y-2?
115, Y-3=130, Y-4=145, Y-5=160. For future we assume the
1 Sameer Gu 4
growth
During rate to beofsimilar
a period steadilyto increasing
CAGR% observed over of
prices which lastthe
4
4 years (from
following Y-1
methods to Y-5). What
of measuring is revenue for
the inventory Y-7is likelyof to
1 Sameer Gu Mr.XYZ has purchased a car by borrowing an amount
result in thebearing
Rs.500000 lowest an gross profitrate
interest ? of 9% per annum
1 Sameer Gu 4
compounded monthly, for 5 years. What would be EMI
Which
amount,ofiftheEMI following
is paid atisthea correct representation
beginning of the month. of formula
1 Sameer Gu 4 Calculate the depreciation amount to be charged per year
in excel?
using the straight line depreciation method, if the cost of an
4 Mr.XYZ has purchased
1 Sameer Gu asset is Rs.16000 and thea salvage
car by borrowing an amount
value is Rs.1000. Theof
Rs.650000
useful life of bearing an interest
the asset is 5 years.rate of 12% per annum
1 Sameer Gu 4
compounded monthly, for 7 years. What would be EMI
4 amount,
Which ofifthe
EMI is paid atstatements
the beginning of the month.
1 Sameer Gu Calculate the following
ROE of the company is most
with theaccurate?
use of following
information: EBIT = Rs.5000, Tax rate = 30%, Interest rate =
4 Calculate the present value (PV) following
1 Sameer Gu 15%, Outstanding debt = Rs.10000, Equity cash
valueflow = with a
discount
Rs.20000. rate of 10%: 100,200,450,650. Assume the first cash
1 Sameer Gu 4
flow
Duringcomes at theofend
a period of thedecreasing
steadily first year and thewhich
prices other cash
of the
4 flows come
following after that with an equal interval of 1isyear.
1 Sameer Gu Last 5 years revenue for a business are Y-1 = 100, Y-2 =to
methods of measuring the inventory likely
result in the lowest
115, Y-3=130, gross profit
Y-4=145, ? For future we assume the
Y-5=160.
4 Calculate thetopresent value
1 Sameer Gu growth rate be similar to (PV)
CAGR% following cashover
observed flowlast
with4 a
discount
years (fromrateY-1of 10%: 100,200,450,750.
to Y-5). What is revenue Assume
for Y-10 the first cash
1 Sameer Gu 4
flow
Find comes at the value
the terminal end ofusing
the first
Gordonyear Growth
and the other
Modelcash , if next
4 flows come
expected FCFEafteristhat
1500,with an of
cost equal interval
equity is 10%,of 1and
year.
maturity
1 Sameer Gu
growth
_______ rateis is 3%
a market structures in which there exists a single
1 Sameer Gu 4
seller, and single buyer.
Calculate present value of annual infinite cash inflow of Rs
4 Calculate the ROE of theiscompany
1 Sameer Gu 10,000 if rate of interest 8.00% with the use of following
4 Calculate the present value (PV) following
1 Sameer Gu 15%, Outstanding debt = Rs.10000, Equity cash
valueflow
= with a
discount
Rs.20000. rate of 10%: 100,300,450,650. Assume the first cash
1 Sameer Gu 4
flow
Whatcomes at thetest
is the acid endratio
of the first
ratio of year and the
company otherhas
which cash
current
4 flows come after that with an equal interval
asset worth 20 mn, current liability worth 15 mn and of 1 year.
1 Sameer Gu
inventory worth 5 mn?
1 Sameer Gu 4 Which
Mr.XYZ of has
the purchased
following statements is most accurate?
a car by borrowing an amount of
Rs.500000 bearing an interest rate of 12% per annum
1 Sameer Gu 4
compounded monthly,
If Accounts payable forfor
Y-17 years.
= 600,What
Y-2 =would be EMI
750, and COGS
4 amount,
for the Y-2if EMI is paid
is 5000, at the
what wouldbeginning of theofmonth.
be the value Payable Days
1 Sameer Gu
for Y-2?
Last 5 years revenue for a business are Y-1 = 100, Y-2 =
115, Y-3=130, Y-4=145, Y-5=160. For future we assume the
1 Sameer Gu 4
growth
What israte to betest
the acid similar
ratiotoratio
CAGR% observed
of company overhas
which lastcurrent
4
4 years (from Y-1 to Y-5). What is the CAGR%
asset worth 30 mn, current liability worth 10 mn and ?
1 Sameer Gu
If Accounts
inventory receivable
worth 5 mn? for Y-1 = 100, Y-2 = 150, and Sales
1 Sameer Gu 4 for the Y-2the
Calculate is ROE
2000,ofwhat would be with
the company the value of Days
the use Sales
of following
Outstanding (a.k.a Average Collection Period) for Y-2?
1 Sameer Gu 4
10%,
What Outstanding debt
is the acid test = Rs.10000,
ratio Equity value
ratio of company which=has current
4 Rs.20000.
asset worth 20 mn, current liability worth 10 mn and
1 Sameer Gu
If Accounts
inventory receivable
worth 5 mn? for Y-1 = 200, Y-2 = 150, and Sales
1 Sameer Gu 4 for the Y-2 is 2000, what would be the value of Days Sales
Outstanding (a.k.a Average
For non conventional Collection
cash flows, whichPeriod)
of the for Y-2?
following
4 Mr.XYZ has purchased
1 Sameer Gu capital budgeting criteriaa should
car by borrowing
be preferred?an amount of
Rs.500000
Last 5 years revenue for a business are Y-1 = 100,annum
bearing an interest rate of 9% per Y-2 = 115, Y-
1 Sameer Gu 4
compounded
3=130, Y-4=145, monthly,
Y-5=160.forFor3future
years.we
What would
assume thebe EMI rate
growth
to
amount, if EMI is paid at the beginning of the month.Y-1 to Y-
be similar to CAGR% observed over last 4 years (from
1 Sameer Gu 4 5). What is revenue for Y-6
If Accounts payable for Y-1 = 550, Y-2 = 750, and COGS for the Y-2
1 Sameer Gu 4 is 7500, what would be the value of Payable Days for Y-2?
_______ is a market structures in which there exists a single
1 Sameer Gu 4 seller, and several buyers.
Last 3 years revenue for a business are Y-1 = 100, Y-2 = 115, Y-
4 3=130. If for the future of
A company has a beta we1.5. The risk
assume thefree rate is
revenue to3% andbymarket
grow
1 Sameer Gu return is 9%. Calculate the cost of equity?
average of last two years y/y growth (assume this to be growth
rate for all future years). Then what would be the revenue
1 Sameer Gu 4 estimate forreceivable
Year-4 for Y-1 = 200, Y-2 = 250, and Sales for the
If Accounts
Y-2 is 2500, what would be the value of Days Sales Outstanding
1 Sameer Gu 4 (a.k.a Average Collection Period) for Y-2?
A company has a beta of 2. The risk free rate is 3% and market
1 Sameer Gu 4 return is 10%. Calculate the cost of equity?
1 Sameer Gu 4 Which ofterminal

the following
Find the value statements
using Gordon is most
Growthaccurate?
Model , if next
expected FCFE is 2500, cost of equity is 12%, and maturity growth
1 Sameer Gu 4 rate is 4%
Which of the following is the most accurate statement regarding
1 Sameer Gu 4 a Financial Model:value using Gordon Growth Model , if next
Find the terminal
Calculate
Mr.XYZ haspresent
purchasedvaluea of
carannual infinite an
by borrowing cash inflow of
amount of Rs
1 Sameer Gu 4 10,000 if rate of interest is 12.00%
Rs.500000
Last 3 yearsbearing
revenue anfor
interest rate of
a business are9%
Y-1per annum
= 100, Y-2compounded
= 115, Y-
monthly,
3=130. for the
If for 6 years.
futureWhat would be
we assume theEMI amount,
revenue if EMIby
to grow is paid at
1 Sameer Gu 4 the beginning
average of lastoftwotheyears
month.
y/y growth (assume this to be growth
1 Sameer Gu 4 estimate for Year-7
_______
Last 5 years is arevenue
market forstructures in which
a business there
are Y-1 exists
= 100, Y-2 a= several
115, Y-
1 Sameer Gu 4 sellers, and single buyer.
3=130, Y-4=145, Y-5=160. For future we assume the growth rate
to be similar to CAGR% observed over last 4 years (from Y-1 to Y-
1 Sameer Gu 4 5).
FindWhat is revenue
the terminal for Y-8
value using Gordon Growth Model , if next
Calculate the ROE of the company with the use of following
information: EBIT = Rs.6000, Tax rate = 30%, Interest rate = 15%,
1 Sameer Gu 4 Outstanding debt = Rs.10000, Equity value = Rs.20000.
_______
Last 5 yearsis arevenue
market for
structures in which
a business are Y-1there exists
= 100, Y-2 a= two
115,sellers,
Y-
1 Sameer Gu 4 and several buyers.
3=130, Y-4=145, Y-5=160. For future we assume the
Last 3 years revenue for a business are Y-1 = 100, Y-2 = 115, Y-growth rate
to
3=130. If for the future we assume the revenue to grow by to Y-
be similar to CAGR% observed over last 4 years (from Y-1
1 Sameer Gu 4 5). Whatof is last
revenue for Y-9y/y growth (assume this to be growth
average two years
1 Sameer Gu 4 estimate
Calculate for
theYear-5
ROE of the company with the use of following
information:
Calculate theEBIT = Rs.4000,
depreciation Tax rate
amount to =be35%, Interest
charged per rate
year=using
15%,
1 Sameer Gu 4 Outstanding debt = Rs.10000, Equity value = Rs.20000.
the straight line depreciation method, if the cost of an asset is
Rs.16000 and the salvage value is Rs.2000. The useful life of the
1 Sameer Gu 4 asset is 4 years.
A company has a beta of 1.5. The risk free rate is 4% and market
1 Sameer Gu 4 return is 8%. Calculate the cost of equity?
Increase
3=130. in government
If for the future wespending
assumecauses ______________
the revenue to grow by of
1 Sameer Gu 4 private investment.
1 Sameer Gu 4 estimate forrevenue
Year-6 for a business are Y-1 = 100, Y-2 = 115, Y-
Last 3 years
_______
3=130. is athe
If for market structures
future we assume in which there exists
the revenue to growa few
by sellers,
1 Sameer Gu 4 and several buyers.
1 Sameer Gu 4 estimate for Year-8
Find the FCFE from the given data below.EBITDA for the company
4 is 1500. Company has charged a depreciation of 300 in the
current year. Company has a debt of 1500 at 10% interest rate.
The tax rate of the company is 20%. During the year the company
added new machinery worth 100 and working capital reduced by
2 Sameer Gu 50. Debt raised during the year was 150 and repaid was 275.
4 Find the npv for the following cash flows: Y-0 = -100, Y-1=50, Y-
2 Sameer Gu 2=50, Y-3=50. Take the disount rate as 10%
4 3=130, Y-4=145,Y-5=170. If for the future we assume the revenue
to grow by last 4 year CAGR% and COGS to be 65% of Revenues.
2 Sameer Gu Then what will be Year-9 COGS?
4 Find the IRR for the following cash flows: Y-0 = -100, Y-1=50, Y-
Find the FCFF from the given data below. Net Income for the
company is 550, Tax rate is 35% and there is a debt on the books
4 of the company worth 5000 at 8% interest rate. Depreciation
charged during the current period is 125 and the capex done by
the company is 225 . Working capital increased by 50 during the
current year. No additional borrowings or repayment was done
2 Sameer Gu by the company.
A company has a D/E of 3. As per the balance sheet, the

4 outstanding debt is Rs.10000 bearing an interest rate of 10%. The
cash and cash equivalent is Rs.1250. The net income of the
company is Rs.1600 and the tax rate is 30%. The depreciation and
amortization amount is Rs.500.. Calculate the EV/EBITDA of the
company.. Consider the book value of equity same as the market
2 Sameer Gu value of equity of the company.
A company has a D/E of 0.5. As per the balance sheet, the

Company ABC Ltd. is a Services company. The operating profit of

4 the company is Rs.4500 mn. The outstanding debt of the
company is Rs.5500 mn bearing an interest rate of 15%. The tax
rate is 30%. The dividend rate is 45%. The number of outstanding
shares are 55 mn. Currently the stock is trading at Rs.75. Calculate
2 Sameer Gu the P/E ratio of the company.
the company is 225 . Working capital decreased by 50 during the
added new machinery worth 100 and working capital increased
2 Sameer Gu by 50. Debt raised during the year was 150 and repaid was 275.

the company is 225 . Working capital decreased by 50 during the


A company has a D/E of 1.25. As per the balance sheet, the


added new machinery worth 100 and working capital increased
2 Sameer Gu by 50. Debt raised during the year was 150 and repaid was 275.
the company is 225 . Working capital increased by 50 during the
Item Image Option Text 1 Option Text 2 Option Text 3 Option Text 4 Correct Option
21.29 24.33 20.58 24.66 1
179.9 202.4 227.6 256 2

Average
Weighted Averag FIFO Method LIFO Method 3
Method
8738.98 8826.37 10301.91 10379.18 3
=sum(AB) =sum(A1;B1) =sum(A1:B1) =sum(A1B1) 3
3000 1500 4500 1000 1
11360.67 11474.28 127166.54 142426.53 1

Supply Curve - Supply Curve -
Supply Curve -
Supply Curve - C Curve Sloping A humped curve 2
A vertical curve
upward to right
0.16 0.1 0.08 0.12 4
1050.45 1340.45 1224.64 1038.25 4

Average
Weighted Averag FIFO Method LIFO Method 2
Method
202.4 227.6 256 287.9 4
1050.45 1340.45 1224.64 1106.55 4
21428.5 19987.5 15568.5 25654.5 1

Bilateral
Oligopoly Monopoly Duopoly 3
Monopoly
100000 125000 150000 175000 2
0.16 0.1 0.08 0.11 4
1050.45 1340.45 1224.64 1120.89 4

Law of supply
Law of demand Law of demand
2 says
1.5that 2.5that
says says1that 4
demand of
demand of demand of
Law of supply sayproduct rises as 4
product falls as product rises as
price of
11360.67 11474.28 price8738.98
of product price8826.37
of product 3
substitute
falls falls
decreases
49.275 36.5 47.45 54.75 1
0.105 0.115 0.125 0.135 3
2 1.5 2.5 3 3
22.81 27.37 20.58 24.66 1
0.08 0.12 0.14 0.1 4
2 1.5 2.5 3 2
20.58 24.66 31.94 27.37 3

Discounted
NPV IRR Payback period 1
Payback Period
11360.67 11474.28 15781.51 15899.87 3
179.9 202.4 227.6 256 1
31.63 36.5 47.45 54.75 1
41.975 29.2 31.63 36.5 1
Oligopoly Monopoly Bilateral Monopol Monopsony 2
0.11 0.12 0.13 0.14 2
148.2 169 192.7 219.7 1
32.85 36.5 31.94 27.37 1
47.45 54.75 75.25 65.45 1
0.15 0.16 0.17 0.18 3
Demand Curve - Cur

Demand Curve - Cur
Demand Curve - A Demand Curve - A v 1
31250 21550 15750 25650 1
Excel containing hisBasic calculation toA decision making Et xcel spreadsheet 3
11111.11 8333.33 6666.67 333333.33 1
83333 93333 86666 75757 1
10301.91 10379.18 8945.68 9012.77 3
148.2 169 192.7 219.7 4
179.9 202.4 227.6 256 3
8333.33 6666.67 333333.33 10000 1

0.1 0.08 0.12 0.16 4
Oligopoly Monopoly Duopoly Monopsony 3
179.9 202.4 227.6 256 4
148.2 169 192.7 219.7 2
0.15 0.16 0.1 0.08 4
3000 3500 4500 4000 2
0.09 0.1 0.11 0.12 2
Inflation Unemployment Money Supply Crowding Out 4
148.2 169 192.7 219.7 3
169 192.7 219.7 250.5 4
765 865 965 1065 3
24.34 22.13 50 -50 1
187.9 192.3 193.9 185.6 1
23.40% 22.40% 20.40% 18.40% 1
760 660 860 960 2
25.92 23.56 22.76 24.34 1

164.5 166.3 168.5 160.1 1
25.30% 26.30% 23.50% 32.50% 1
3.84 3.63 3.19 3.38 3
8.03 7.59 6.69 7.79 2
1.6 0.72 0.84 1.48 1
760 660 860 960 4
$20.70 22.76 $23.70 $19.76 1
1205 1305 1405 1505 2

2.71 1.22 5.02 2.26 1
144.1 146.4 148.2 141.3 1
5.02 2.26 4.24 3.64 1
760 660 860 960 1
4.13 8.73 2.13 3.93 2
22.76 20.7 24.34 22.13 1
21.60% 20.60% 19.60% 22.60% 1
4.95 5.24 4.42 5.66 1

5.48 4.42 4.68 3.49 2
$22.13 24.34 $20.13 $26.34 1
1.41 0.64 1.6 0.72 1
3.84 3.63 4.84 4.63 2
$23.56 25.92 $21.56 $27.92 1
765 865 965 1065 2
760 660 860 960 3
126.2 131 133 123.5 1

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Input Language English

Item Bank ID 35073
Difficulty Level (Low-
Author
1,Medium-2,High -3)
3 Sameer Gu
3 Sameer Gu
3 Sameer Gu
3 Sameer Gu
3 Sameer Gu
3 Sameer Gu
LE CORRECT ITEM TEMPLATE
1. Column with red header indicates mandatory fields.
2. Item Text and Item Image both should not be empty.Fill at least one column details.
3. No of option specified in No of Options(2-6) column should match with no of filled option de
4. Option text and Option Image both should not be empty .Fill at least one column details.
5. Fill Difficulty Level number.
6. Fill Expiry Date in (dd/mm/yyyy) format.
7. For all image columns write the respective image name in the column(for eg. sample.jpg)
8. use **text** for bold text.
9. use *text* for italic text.
10. use ++text++ for underline text.if underline text to be used in very first word then use '++
11. use ~~text~~ for put a line through text.
12. use ~text~ for subscript text.
13. use ^text^ for superscript text.
SIMS_MBA Batch
Questions : (2 Time)
(students can attemp any two questions for 12 Marks)
Project the Income statement of a company. Following are the details of revenues
from 2 segments for a company. Segment-1: Year-1 = 2700, Year-2 = 3500. Segment-
2: Year-1 = 1200, Year-2 = 1400. Both segments have worked at a gross margin of
35% for segment-1 and 20% for segment-2 for both the years. The selling and
administration expenses have remained at 15% of the revenues for each year. The
company additionally has a debt of 3400 since Year-1 to Year-2, which has an
interest rate of 9%. Debt will be repaid at the end of 5 years. Company has fixed
assets of 5500 for both the years. These were depreciated at 5% each year and new
assets worth the same amount were added each year(Interest and Depreciation
remain same for both the years). The tax rate for the company is 35%.Complete the
Income statement of the company based on the given data and find the Net Profit
for the year-2. Don't assume any interest income. Tax losses if any, are not carried
forward.
Project the cash flow statement of a company. Given below are the details of
Income Statement and changes in the Balance sheet of a company. Compute Ending
cash balance for the company(i.e. complete the cash flow statement).
Income Statement Details: Revenue =1300, COGS = 600, SG&A is 15% of
Revenues, Depreciation=50, Debt=500 and interest rate is 10%, Tax Rate is 30%.
Balance Sheet Changes: Increase in current assets = 200, Decrease in current
liabilities=25, Purchase of Fixed Assets (Capex) = 108.5, No change in Debt and
Equity. The company started the year with cash=0.
Find the enterprise value of the company. Net Income for the company is 750, Tax
rate is 35% and there is a debt on the books of the company worth 5000 at 8%
interest rate. Depreciation charged during the current period is 125 and the capex
done by the company is 225 . Working capital increased by 50 during the current
year. No additional borrowings or repayment was done by the company. This FCFF is
for current period. It is expected that the FCFF for the next 5 years will increase at
15% and thereafter it will grow at maturity growth rate of 5% forever. If company's
D/E = 1.5 and Kd(pre tax) = 10%, ke = 15%, What is the Enterprise value of the
company, considering a 2-stage DCF model.(Stage-1 high growth = 15%, Stage-2
terminal growth = 5%). Do not consider current year FCFF in valuation. Valuation is
always forward looking.
Forecast cash flow statement of a company based on the details of Income

Statement and changes in the Balance sheet of a company. Compute Ending cash
balance for the company(i.e. complete the cash flow statement).
Income Statement Details: Revenue =1250, COGS = 600, SG&A is 15% of Revenues,
Depreciation=50, Debt=500 and interest rate is 10%, Tax Rate is 30%.
Balance Sheet Changes: Increase in current assets = 200, Decrease in current
liabilities=25, Purchase of Fixed Assets (Capex) = 28.75, No change in Debt and
Equity. The company started the year with cash=0.
Estimate the Income Statement of a company. Following are the details of revenues
from 2 segments for a company. Segment-1: Year-1 = 2700, Year-2 = 3500. Segment-
2: Year-1 = 1200, Year-2 = 1400. Both segments have worked at a gross margin of
25% for segment-1 and 10% for segment-2 for both the years. The selling and
administration expenses have remained at 20% of the revenues for each year. The
company additionally has a debt of 3400 since Year-1 to Year-2, which has an
interest rate of 9%. Debt will be repaid at the end of 5 years. Company has fixed
assets of 5500 for both the years. These were depreciated at 5% each year and new
assets worth the same amount were added each year(Interest and Depreciation
remain same for both the years). The tax rate for the company is 35%.Complete the
Income statement of the company based on the given data and find the Net Profit
for the year-2. Don't assume any interest income. Tax losses if any, are not carried
forward.
Estimate the enterprise value of a company. Net Income for the company is 1750,
Tax rate is 25% and there is a debt on the books of the company worth 5000 at 8%
interest rate. Depreciation charged during the current period is 125 and the capex
done by the company is 225 . Working capital increased by 50 during the current
year. No additional borrowings or repayment was done by the company. This FCFF is
for current period. It is expected that the FCFF for the next 5 years will increase at
15% and thereafter it will grow at maturity growth rate of 5% forever. If company's
D/E = 2 and Kd(pre tax) = 10%, ke = 15%, What is the Enterprise value of the
company, considering a 2-stage DCF model.(Stage-1 high growth = 15%, Stage-2
terminal growth = 5%). Do not consider current year FCFF in valuation. Valuation is
always forward looking.
Model Answer
Add the data for 2 year Revenues for both the segments. Then estimate the Gross Profit for the two segments. From
profit subtract the following expenses to get the PBT. SG&A as % of Total Revenues, Interest as % Debt and Depre
Total Assets. The interest and Depreciation will remain same for both the years. If PBT is > 0 then find tax else tax =
should get PAT. The PAT for Year-2 is 122.85
First estimate the PAT by builing the Income Statement. For the cash flow statement we will have to add dep in Pat a
current assets, or subtract increase in current assets. Similarly add increase in current liabilities and subtract decreas
liabilities. Thus we will get the CFO. Capex should be taken negative. Net change in cash will be CFO + CFI + CFF
0). This Net Change when you add to Beg Cash, you will get End Cash. The EOP Cash is 0.
Estimate the FCFF for year-0 using formula EBIT*(1-t)+Dep-Capex+/-Change in WC. Then calculate the FCFF fo
years using the 5 year Stage-1 Model and 6th Year terminal Model. Then estimate the Terminal Value using Gord
Model. Use these estimates of Cash flow to find the Enterprise Value. The discount rate to be used is WACC, wh
calculated from the given data. The EV for the company is 28,057.
First estimate the PAT by builing the Income Statement. For the cash flow statement we will have to add dep in Pat a
current assets, or subtract increase in current assets. Similarly add increase in current liabilities and subtract decreas
liabilities. Thus we will get the CFO. Capex should be taken negative. Net change in cash will be CFO + CFI + CFF
0). This Net Change when you add to Beg Cash, you will get End Cash. The EOP Cash is 50.
Add the data for 2 year Revenues for both the segments. Then estimate the Gross Profit for the two segments. From
profit subtract the following expenses to get the PBT. SG&A as % of Total Revenues, Interest as % Debt and Depre
Total Assets. The interest and Depreciation will remain same for both the years. If PBT is > 0 then find tax else tax =
should get PAT. The PAT for Year-2 is -546
Estimate the FCFF for year-0 using formula EBIT*(1-t)+Dep-Capex+/-Change in WC. Then calculate the FCFF fo
years using the 5 year Stage-1 Model and 6th Year terminal Model. Then estimate the Terminal Value using Gord
Model. Use these estimates of Cash flow to find the Enterprise Value. The discount rate to be used is WACC, wh
calculated from the given data. The EV for the company is 60,708.
Questions CO
Q.NO.
Marks (1,2,3,4,5)
6 3 1
6 4 2
6 5 3
6 4 4
6 3 5
6 5 6

QP of Financial Modelling - Prof. Sameer Gunjal

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MULTIPLE CHOICE SINGLE CORRECT ITEM TEMPLATE

Input Language English

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