Series 79, Chapter 07 - Discounted Cash Flow Analysis complete

Series 79, Chapter 07 - Discounted Cash Flow AnalysisIntrinsic Value - correct answer Fundamental value implied by DCF (as opposed to current market value) (7-217) Free Cash Flow Calculation - correct answer FCF = (EBIT) - (Taxes: at marginal rate) = (EBIAT) + (D&A) - (Capex) - (increase in net working capital) (7-223) Net Working Capital - correct answer (current assets) - (current liabilities) = (AR + Inventory + prepaid expenses and other current assets) - (AP + Accrued Liabilities + Other Current liabilities) (7-231) Days Sales Outstanding (calculation) - correct answer DSO = AR/sales x 365 (7-232) Days Inventory Held (calculation) - correct answer DIH = Inventory/CoGs x 365 (7-233) Inventory Turns (calculation) - correct answer Turns = CoGs/Inventory (7-233) Days Payable Outstanding (calculation) - correct answer DPO = AP/CoGs x 365 (7-234) Where in a company's financial statements is D&A typically located? - correct answer cash flow statement (7-235) An increase in A/R would result in which of the following? (a) a source of cash, (b) a use of cash, (c) a decrease in a current liability, (d) no effect on cash - correct answer B (A use of cash. - 4-235) The cash flow statement includes which of the following sections (select two)? (I) Operating Activities, (II) Shareholders' Equity, (III) Investing Activities, (IV) Retained Earnings - correct answer (I)&(III) Operating Activities and Investing Activities. (7-235)