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10. Common-size financial statements recast each statement
item as
11. Financial statement forecasts rely on additivity within
financial statements and articulation across financial
statements. Given this information sales growth forecasts will
most likely affect growth in
12. Equity-based valuation models are based on all metrics
except
13. If a firm has a market beta of 0.9, is subject to an income
tax rate of 35 percent, has a risk-free rate of 6 percent, a
market risk premium of 7 percent, and has a market value of
debt to market value of equity ratio of 60 percent, what does
the market expect the firm to generate in terms of equity
returns using CAPM?
14. Equity valuation models based on dividends, cash flows,
and earnings have been the topic of many theoretical and
empirical research studies in recent years. All of the following
are true regarding these studies except:
15. A disadvantage of the free cash flow valuation method i
17. Operating assets include all of the following except
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