Precedent transactions Study guides, Class notes & Summaries

3 Major Valuation Methods - Answer-Comparable Companies (public Comps) Precedent Transactions (Acquisition Comps) Discounted Cash Flow Analysis Rank the 3 Valuation Methods - Answer-Trick question- no ranking always holds Precedent transactions> comparable companies due to the control premium built into acquisitions DCF could go either way but it's best to say that it's more variable than other methods. Often it produces the highest value but can produce the lowest depending on your a...

Which of the following is NOT a RECA educational resource for industry professionals? - Answer- Spatial Information System (Spin 2) Which entity has the authority to amend the Real Estate Act - Answer- Provincial Legislature Which of the following measures the change in a cost of a fixed basket of goods and services purchased by families over a period of time - Answer- Consumer Price Index (CPI) Which of the following will occur to the supply of a good when there is a change in quantity...

The two main drivers of globalization are: - Trade and Technology Goods and Service Purchased abroad and brought into a country are called - Imports Any commercial transactions that crosses the boarder of two or more nations - International Business All goods and services sold abroad and sent out of the country - Exports Globalization is the trend toward greater economic, cultural, ____________, and ____________ interdependence among national institutions etc. - Political, Technological G...

Real Estate: Practice Questions and Answers 100% Pass A broker obtained an offer with a deposit from a buyer on June 10, 2008, which states that the offer was irrevocable for five days from date. There had been no acceptance by the next day when the buyer called and revoked his offer. The broker should: get an acceptance by June 15th. get an acceptance by June 16th. return the deposit to the buyer. place the deposit in escrow. return the deposit to the buyer. Informing a person th...

What are the 3 major valuation methodologies? - Answer-Comparable Companies, Precedent Transactions and Discounted Cash Flow Analysis. Rank the 3 valuation methodologies from highest to lowest expected value. - Answer-Trick question - there is no ranking that always holds. In general, Precedent Transactions will be higher than Comparable Companies due to the Control Premium built into acquisitions. Beyond that, a DCF could go either way and it's best to say that it's more variable than ot...

What is Statutory Law? - Includes law enacted by legislative bodies such as state legislatures and US Congress. The Uniform Commercial Code or "UCC" is a body of the state statutory law. What is Regulatory Law? - Consists of regulations adopted by public bodies. Examples of regulatory law are regulations issued by the Internal Revenue Service (IRS) or the Securities Exchange Commission (SEC). Generally regulatory laws are not binding up the courts in the manner or statutory laws, but may be su...

What is Statutory Law? - Includes law enacted by legislative bodies such as state legislatures and US Congress. The Uniform Commercial Code or "UCC" is a body of the state statutory law. What is Regulatory Law? - Consists of regulations adopted by public bodies. Examples of regulatory law are regulations issued by the Internal Revenue Service (IRS) or the Securities Exchange Commission (SEC). Generally regulatory laws are not binding up the courts in the manner or statutory laws, but may be su...

business law Collin College -Unit 1 Business Law fully solvedLaw - correct answer Rule of civil conduct commanding what is right and prohibiting what is wrong. Business Law - correct answer Those rules of conduct prescribed by a government and it's agencies, in regulating business transactions. Common Law - correct answer Customs which have become recognized by the courts as binding on the community. 49 of 50 states based on Common Law (English). Louisiana based on Canon Law (French) P...

How do you value banks and financial institutions differently from other companies? - Answer-You mostly use the same methodologies, except: • You look at P / E and P / BV (Book Value) multiples rather than EV / Revenue, EV / EBITDA, and other "normal" multiples, since banks have unique capital structures. • You pay more attention to bank-specific metrics like NAV (Net Asset Value) and you might screen companies and precedent transactions based on those instead. • Rather than a DCF,...

Cost of Equity tells us what kind of return an equity investor can expect for investing in a given company - but what about dividends? Shouldn't we factor dividend yield into the formula? - Dividends are already factored into Beta because Beta describes returns in excess of the market as a whole - and those returns include dividends Two companies are exactly the same, but one has debt and one does not - which one will have the higher WACC - The one without debt will have a higher WACC up t...