Week 6

Question 1

EBITDA Pros

Answer 1

Convenient to Calculate and Widely
Used

Adds-Back Non-Cash Expenses – e.g.
Depreciation & Amortization

Most Appropriate for Mature
Companies

Question 2

EBITDA Cons

Answer 2

Criticized for Being an Inaccurate Proxy for Operating Cash Flow

Remains Prone to Accrual Accounting and Management Discretion

Less Appropriate for Capital Intensive Industries (i.e. Does NOT Account for Capital Expenditures)

Question 3

STOCK BETA

Answer 3

stock volatility
A beta greater than 1.0 suggests that the stock is more volatile than the broader market,

A beta less than 1.0 indicates a stock with lower volatility.

A beta of 0 indicates that the stock doesn’t move when the market moves

A negative beta means that the stock is moving in the opposite direction with the market

Question 4

Scenario Analysis

Answer 4

Best Case- Assumptions follow the best-case scenario growth numbers

Worst case- Assumptions follow the worst-case scenario growth numbers

Base case is the most realistic scenario

Question 5

3-Point Estimate

Answer 5

Weighted average = (Worst case + 4*Base case + Best case)/6

Question 6

Supervised machine learning

Answer 6

the machine learns under supervision
model that is able to predict with the help of a labeled dataset

1. Classification
2. Regression

Question 7

Unsupervised learning

Answer 7

the machine uses unlabeled data and learns on itself without any supervision.

The machine identifies patterns from the given set and groups them based on their patterns, similarities,

Clustering
Association