Across
- 2. Relevant cash flows for the project should be -------------------------to the project.
- 6. ------------------------costs are expenditures that either have already been made or must be made regardless of whether the firm proceeds with the investment.
- 8. If the discount rate in the valuation exercise is a risk-free rate, the cash flows should be ---------------- equivalent cash flows.
- 9. Stern -------------------and Company developed EVA to provide a single, value-based measure which can be used in solving the measurement problem in short-term.
- 13. -------------------------------costs are incurred when the firm foregoes other opportunities for using the assets.
- 14. 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.
- 15. If the cash flows in the valuation exercise for a levered firm is FCFF, the discount rate should be the cost of -------------------------.
- 16. Value of an option increases with ------------------------------.
- 17. One of the major applications of the APV method of valuation is in valuing leveraged ------------------transactions.
- 18. -----------------------analysis is a risk analysis technique by which analysts explore the sensitivity of an investment’s value under different situations that might arise in the future.
- 19. An investment that increases near-term earnings is referred to as earnings -----------------.
- 20. 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.
Down
- 1. Real options value inherent --------------------------in investment opportunities.
- 3. The -------------------- investment value is the focal point for negotiations between the entrepreneur and Venture Capital in a startup valuation.
- 4. 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.
- 5. Risk -------------- refers to a preference for certainty over uncertainty, even if the uncertain option has a potentially higher expected outcome.
- 7. 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.
- 10. An investment project that reduces the firm’s earnings in the current or following year is referred to as earnings ------------------------.
- 11. Cost --------------------in an M&A can be achieved by eliminating duplicate functions, optimizing operations, or leveraging economies of scale.
- 12. The valuation method to be used if the capital structure is changing is called ------------------------present value method.