Question I : BAV Crossword

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Across
  1. 5. Equity ----------------- are instruments that bestow upon the holder of the instrument the right to buy a particular stock at a predetermined price within a stipulated time frame.
  2. 7. Value of an option increases with ------------------------------.
  3. 9. In order to solve the measurement problem in the short-term for a project with stable earnings, the parameter to calculate is -------------------------profit instead of EPS.
  4. 11. An investment project that reduces the firm’s earnings in the current or following year is referred to as earnings ------------------------.
  5. 13. Stern -------------------and Company developed EVA to provide a single, value-based measure which can be used in solving the measurement problem in short-term.
  6. 15. One of the major applications of the APV method of valuation is in valuing leveraged ------------------transactions.
Down
  1. 1. The valuation method used if Discounted cash flow valuation is used for calculating the value of planning period cash flows of the firm and a relative valuation is used for Terminal value calculations of the same firm is called ----------------------valuation model.
  2. 2. If the cash flows in the valuation exercise for a levered firm is FCFF, the discount rate should be the cost of -------------------------.
  3. 3. If the discount rate in the valuation exercise is the cost of equity for all equity financed firms, the cash flows should be -----------------------cash flows.
  4. 4. The valuation method to be used if the capital structure is changing is called ------------------------present value method.
  5. 6. An investment that increases near-term earnings is referred to as earnings -----------------.
  6. 8. ------------- options values inherent flexibilities in investment opportunities.
  7. 10. If the discount rate in the valuation exercise is a risk-free rate, the cash flows should be ---------------- equivalent cash flows.
  8. 12. The -------------------- investment value is the focal point for negotiations between the entrepreneur and Venture Capital in a startup valuation.
  9. 14. If the acquirer company is uncertain about the realization of synergies, the mode of payment for acquisition would be preferably ……………….