Module 05 - Multiple Answer Question: Choose the correct answer(s)
(1) To estimate firm value we multiply share price to the number of outstanding share in the market
(2) To estimate firm's value using DCF (Discount Cash Flow), we simply use the fundamental equation NPV = ΣCF(t)/(1+r)^t where CF(t) is UFCF(t): Unlevered Free Cash Flow and r: WACC
(3) Common practice, we only make forecast for UCFC up to 5 years. After 5th year, we simply assume UFCF growth with a fixed rate g
(4) The fixed rate g often used is GPD growth rate ~2-3%