Exam 17: Valuing Shares

What term is used for the amount that is available to be paid out to the firm's investors?

Calculate a firm's free cash flow if it has net operating profit after taxes of £60,000, depreciation expense of £10,000, net fixed asset investment requirement of £40,000, a net current asset requirement of £30,000 and a tax rate of 30%.

A behavioral approach for dealing with project risk that uses several possible values for a given variable such as cash inflows to assess that variable's impact on NPV is called

How is total shareholder value calculated?

A common approach of estimating the variability of returns involving forecasting the pessimistic, most likely, and optimistic returns associated with the asset is called