BAV CROSSWORD

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Across
  1. 4. The valuation method to be used if the capital structure is changing is called ------------------------present value method.
  2. 5. The -------------------- investment value is the focal point for negotiations between the entrepreneur and Venture Capital in a startup valuation.
  3. 9. Real options value inherent --------------------------in investment opportunities.
  4. 12. Stern -------------------and Company developed EVA to provide a single, value-based measure which can be used in solving the measurement problem in short-term.
  5. 13. If the cash flows in the valuation exercise for a levered firm is FCFF, the discount rate should be the cost of -------------------------.
  6. 14. 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.
  7. 15. If the discount rate in the valuation exercise is a risk-free rate, the cash flows should be ---------------- equivalent cash flows.
Down
  1. 1. 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. 2. An investment that increases near-term earnings is referred to as earnings -----------------.
  3. 3. Value of an option increases with ------------------------------.
  4. 6. An investment project that reduces the firm’s earnings in the current or following year is referred to as earnings ------------------------.
  5. 7. 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.
  6. 8. If the acquirer company is uncertain about the realization of synergies, the mode of payment for acquisition would be preferably ……………….
  7. 10. 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.
  8. 11. One of the major applications of the APV method of valuation is in valuing leveraged ------------------transactions.