Equity

Question 1

FCFF

Answer 1

Changing Capital Structure

Question 2

FCFE

Answer 2

Stable Capital Structure

Question 3

FED Model

Answer 3

E/P > YTM 10yr bond, undervalued

Question 4

Conglomerate Discount

Answer 4

Discount to the stock of a company operating in multiple unrealted business

Question 5

Sum of the parts

Answer 5

Sum of the estimated value of various business considered as independent going concern that require a detailed breakdown

Question 6

Transactions between company and SH

Answer 6

Dividends, buy backs, issuance no affect FCF

Question 7

RI Model

Answer 7

Uses readily accounting data, require adjust for off BS items, subject to manipulation, assume cost of debt is reflected in int. exp.

Question 8

RI constant

Answer 8

Strong market leadership and low dividend pay out ratio

Question 9

Potential dilution

Answer 9

EPS = NI / (common + diluted shares)

Question 10

Yardeni Model

Answer 10

E/P = IG Bond Yield - (growth weight * consensus 5yr earnings growth) + residual

Question 11

Relative Strength Indicators

Answer 11

Comparación de una stock con respecto a su peso en un índice o a su own performance (quién creció más)

Question 12

Private company acquisition

Answer 12

optimal WACC

Question 13

Private Company reporting

Answer 13

current WACC

Question 14

Synergic control premium

Answer 14

Strategic control (higher than financial)

Question 15

PV (Excess Earnings)

Answer 15

required returns para todo

Question 16

Guideline public company method

Answer 16

Ajustes directos en el múltiplo

Question 17

Guideline transactions method

Answer 17

Ya contiene control premium, se consideran synergies