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
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2
Q

Enterprise Value (FCFF) Approach Part 1

A

Debt capacity/enterprise value

WACC

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3
Q

Enterprise Value (FCFF) Approach Part 2

A
EBIT
Interest
EBT
Taxes
EAT
WACC
Enterprise Value
FMV of actual debt
FMV of Equity
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4
Q

Direct Equity (FCFE) Approach Step 1

A

ReL

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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
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