Quiz 5 Leverage 3 Approaches Flashcards
1
Q
Format the APV Approach
A
EBIT Interest EBT Taxes EAT ReU Value of Debt Capacity Enterprise value FMV of actual debt FMV of equity
2
Q
Enterprise Value (FCFF) Approach Part 1
A
Debt capacity/enterprise value
WACC
3
Q
Enterprise Value (FCFF) Approach Part 2
A
EBIT Interest EBT Taxes EAT WACC Enterprise Value FMV of actual debt FMV of Equity
4
Q
Direct Equity (FCFE) Approach Step 1
A
ReL
5
Q
Direct Equity (FCFE) Approach Step 2
A
EBIT Interest (debt capacity times interest) EBT Taxes EAT ReL Enterprise value Debt Adjustment FMV of Equity