INV3701 ASSIGNMENT 2
SEMESTER 1 - 2022
UNIQUE NUMBER:822592
DUE DATE: 4 APRIL 2022
, 1. Which one of the following statements is most likely correct?
1. FCFF model is an example of a relative valuation model.
2. Free cash flow to the firm is cash flow available only to common shareholders.
3. The value of a firm is equal to the value of the operating assets and the non-operating
assets.
Refer to page 436 of the prescribed book.
2. Calculate the total value of German Manufacturing’s equity by using the FCFF valuation
method.
1. R19.22 million
2. R26.63 million
3. R38.38 million
Refer to pages 386-389.
1
SEMESTER 1 - 2022
UNIQUE NUMBER:822592
DUE DATE: 4 APRIL 2022
, 1. Which one of the following statements is most likely correct?
1. FCFF model is an example of a relative valuation model.
2. Free cash flow to the firm is cash flow available only to common shareholders.
3. The value of a firm is equal to the value of the operating assets and the non-operating
assets.
Refer to page 436 of the prescribed book.
2. Calculate the total value of German Manufacturing’s equity by using the FCFF valuation
method.
1. R19.22 million
2. R26.63 million
3. R38.38 million
Refer to pages 386-389.
1