ACC 573 Midterm Exam Guide
18 . The conceptual framework for free cash flows separates the balance sheet equation into the following categories :
19 . If an analyst wants to value a potential investment in the net operating assets of a division of another firm , the analyst should discount the projected free cash flows at the
20 . Residual income in a long-run steady-state growth period is referred to as :
21 . The two most popular discounted earnings models appear to be
22 . Residual income is 23 . The market price of a share of common equity reflects
24 . Strictly speaking , the price-earnings ratio assumes that firm value is the
25 . Valuation using market multiples captures
26 . Under the value-to-book model new projects will be abnormally profitable only when
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ACC 573 Midterm Exam Guide
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