DCF VALUATION MODELLING EXAM |2025-2026 LATEST UPDATED |
ACTUAL EXAM QUESTIONS WITH SOLUTIONS | 100% RATED
CORRECT | 100% VERFIED SOLTIONS | ALREADY GRADED A+
What are two benefits of making a compacted DCF model - (ANSWER)1. Helps us learn the
main features of a DCF model
2. Helps in a situation where we need a quick analysis
What are two important dates in a DCF - (ANSWER)1. Timing of the cashflows
2. Date of Valuation
The time value of money is also called the _______ - (ANSWER)The time quantity of money
What is the simplified formula to discount the cashflows - (ANSWER)Unlevered Free Cash
Flow (UFCF)/ Weighted Average Cost of Capital (WACC)
What are the three types of valuation techniques? - (ANSWER)Discounted Cashflow Analysis
Comparable Trading Analysis
President Transaction analysis
Define Unlevered Free Cashflow - (ANSWER)Cash flow available to all capital providers
Define Weighted Average Cost of Capital - (ANSWER)The cost of capital from all capital
providers
,What is the Enterprise Value in a DCF using Free Cashflows - (ANSWER)Enterprise value = PV
of UFCF/WACC
How long into the future should we forecast in a DCF? - (ANSWER)In perpetuity (This is a
common interview question)
What are the two parts of a DCF? - (ANSWER)1. Discrete Forecast
2. Terminal Value
What is a terminal value of a firm? - (ANSWER)
When is the start and end of the discrete forecast? - (ANSWER)It starts when the company is
growing faster than the overall economy and ends when the company grows at the same rate of
the economy
When is the start and end of a Terminal Value forecast? - (ANSWER)The Terminal value
forecast starts when the company experiences the same amount of growth as the overall economy
and then continues forever (Using a growing perpetuity formula)
Perpetuity Growth formula - (ANSWER)PV1=CF2/(R-G)
PV=Present Value of cashflow
CF=Cashflow of the next year
R= Required Return
G=Growth Rate
What does Enterprise Value represent? - (ANSWER)Our view of the companies value
Equity Value formula - (ANSWER)Equity Value = Enterprise Value - Net Debt
, What is Net Debt formula? - (ANSWER)Total Debt - Cash = Net Debt
What if the formula for Equity Value per Share? - (ANSWER)Equity Value/Shares Outstanding
= Equity Value per Share
What is the keyboard shortcut for Zooming in and out? - (ANSWER)Ctrl Alt +
or
Ctrl Alt -
What is the excel shortcut to group tabs? - (ANSWER)Ctrl Shift Pg up/dn
What how do you make the discrete forecast excel formula? - (ANSWER)=EDATE(today, # of
months in future)
For a sensitivity analysis what is the excel shortcut - (ANSWER)Alt A W T
For row input you put terminal value growth rate
For Column input cell you put WACC
Before you make data tables you must check excel for what? - (ANSWER)File->Options-
>Formulas
Under workbook calculations make sure its set to "Automatic" not "Manuel" or "Except for data
tables."
What is an inportant thing to remember when making data tables - (ANSWER)Make sure that
the X and Y axis is stated as a value and not linked to any other cells
Make sure the Terminal Growth rate is on the middle on the X axis
ACTUAL EXAM QUESTIONS WITH SOLUTIONS | 100% RATED
CORRECT | 100% VERFIED SOLTIONS | ALREADY GRADED A+
What are two benefits of making a compacted DCF model - (ANSWER)1. Helps us learn the
main features of a DCF model
2. Helps in a situation where we need a quick analysis
What are two important dates in a DCF - (ANSWER)1. Timing of the cashflows
2. Date of Valuation
The time value of money is also called the _______ - (ANSWER)The time quantity of money
What is the simplified formula to discount the cashflows - (ANSWER)Unlevered Free Cash
Flow (UFCF)/ Weighted Average Cost of Capital (WACC)
What are the three types of valuation techniques? - (ANSWER)Discounted Cashflow Analysis
Comparable Trading Analysis
President Transaction analysis
Define Unlevered Free Cashflow - (ANSWER)Cash flow available to all capital providers
Define Weighted Average Cost of Capital - (ANSWER)The cost of capital from all capital
providers
,What is the Enterprise Value in a DCF using Free Cashflows - (ANSWER)Enterprise value = PV
of UFCF/WACC
How long into the future should we forecast in a DCF? - (ANSWER)In perpetuity (This is a
common interview question)
What are the two parts of a DCF? - (ANSWER)1. Discrete Forecast
2. Terminal Value
What is a terminal value of a firm? - (ANSWER)
When is the start and end of the discrete forecast? - (ANSWER)It starts when the company is
growing faster than the overall economy and ends when the company grows at the same rate of
the economy
When is the start and end of a Terminal Value forecast? - (ANSWER)The Terminal value
forecast starts when the company experiences the same amount of growth as the overall economy
and then continues forever (Using a growing perpetuity formula)
Perpetuity Growth formula - (ANSWER)PV1=CF2/(R-G)
PV=Present Value of cashflow
CF=Cashflow of the next year
R= Required Return
G=Growth Rate
What does Enterprise Value represent? - (ANSWER)Our view of the companies value
Equity Value formula - (ANSWER)Equity Value = Enterprise Value - Net Debt
, What is Net Debt formula? - (ANSWER)Total Debt - Cash = Net Debt
What if the formula for Equity Value per Share? - (ANSWER)Equity Value/Shares Outstanding
= Equity Value per Share
What is the keyboard shortcut for Zooming in and out? - (ANSWER)Ctrl Alt +
or
Ctrl Alt -
What is the excel shortcut to group tabs? - (ANSWER)Ctrl Shift Pg up/dn
What how do you make the discrete forecast excel formula? - (ANSWER)=EDATE(today, # of
months in future)
For a sensitivity analysis what is the excel shortcut - (ANSWER)Alt A W T
For row input you put terminal value growth rate
For Column input cell you put WACC
Before you make data tables you must check excel for what? - (ANSWER)File->Options-
>Formulas
Under workbook calculations make sure its set to "Automatic" not "Manuel" or "Except for data
tables."
What is an inportant thing to remember when making data tables - (ANSWER)Make sure that
the X and Y axis is stated as a value and not linked to any other cells
Make sure the Terminal Growth rate is on the middle on the X axis
