Quiz: Walk Me Through a DCF

Q1 Intermediate 2 pts

According to the video, what are the five sequential steps of the DCF framework? Video Reference:
"you begin with calculating your stage one cash flows you then calculate terminal value which is your..."

Calculate stage one cash flows, calculate terminal value, discount at WACC, calculate enterprise value, work to equity value Calculate EBIT, determine WACC, calculate terminal value, find enterprise value, subtract debt Project revenue, calculate EBITDA, determine exit multiple, discount cash flows, find share price Calculate free cash flow, find perpetuity growth rate, determine exit multiple, add debt, subtract cash

Quiz: Walk Me Through a DCF

According to the video, what are the five sequential steps of the DCF framework? Video Reference:
"you begin with calculating your stage one cash flows you then calculate terminal value which is your..."

When calculating unlevered free cash flow in Step 1, what specific components does the video mention must be included? Video Reference:
"we're going to start with ebit which is the profit of the business we then take out taxes... add bac..."

According to the video, what are the two specific methods for calculating terminal value? Video Reference:
"there are two ways to calculate terminal value the first way is the perpetuity growth method... the ..."

The video states that the typical projection period for stage one in a DCF analysis is: Video Reference:
"the standard answer for the question of how long you project out for stage one versus stage two is f..."

According to the video, why can't businesses grow faster than GDP perpetually in the terminal value calculation? Video Reference:
"typically around gdp because businesses can't outgrow gdp perpetually..."

What specific example does the video use to explain changes in working capital? Video Reference:
"let's imagine you're starting a pizza shop and you need to set it up you're going to need to buy inv..."

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Quiz: Walk Me Through a DCF

According to the video, what are the five sequential steps of the DCF framework? Video Reference: "you begin with calculating your stage one cash flows you then calculate terminal value which is your..."

When calculating unlevered free cash flow in Step 1, what specific components does the video mention must be included? Video Reference: "we're going to start with ebit which is the profit of the business we then take out taxes... add bac..."

According to the video, what are the two specific methods for calculating terminal value? Video Reference: "there are two ways to calculate terminal value the first way is the perpetuity growth method... the ..."

The video states that the typical projection period for stage one in a DCF analysis is: Video Reference: "the standard answer for the question of how long you project out for stage one versus stage two is f..."

According to the video, why can't businesses grow faster than GDP perpetually in the terminal value calculation? Video Reference: "typically around gdp because businesses can't outgrow gdp perpetually..."

What specific example does the video use to explain changes in working capital? Video Reference: "let's imagine you're starting a pizza shop and you need to set it up you're going to need to buy inv..."

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Share This Quiz

Calculating Your Results...

Source Video

According to the video, what are the five sequential steps of the DCF framework? Video Reference:
"you begin with calculating your stage one cash flows you then calculate terminal value which is your..."

When calculating unlevered free cash flow in Step 1, what specific components does the video mention must be included? Video Reference:
"we're going to start with ebit which is the profit of the business we then take out taxes... add bac..."

According to the video, what are the two specific methods for calculating terminal value? Video Reference:
"there are two ways to calculate terminal value the first way is the perpetuity growth method... the ..."

The video states that the typical projection period for stage one in a DCF analysis is: Video Reference:
"the standard answer for the question of how long you project out for stage one versus stage two is f..."

According to the video, why can't businesses grow faster than GDP perpetually in the terminal value calculation? Video Reference:
"typically around gdp because businesses can't outgrow gdp perpetually..."

What specific example does the video use to explain changes in working capital? Video Reference:
"let's imagine you're starting a pizza shop and you need to set it up you're going to need to buy inv..."