Valuation: Measuring and Managing the Value of Companies 6th Edition

ISBN 13
978-1118873700
ISBN 10
111887370X
Authors
Marc Goedhart, McKinsey & Company Inc., Tim Koller
has exam prep Exam Prep  has homework help Homework Help
35 Exam Prep documents found.
563748
Exam Prep
978-1118873700 Test Bank Chapter 1
McKinsey/Valuation 1 McKinsey/Valuation 1 McKinsey/Valuation 1 Chapter: Chapter 01: Why Value Value? Multiple Choice 1. Which one of the following actions would help a company create long-term value? a) Focus on keeping costs at a minimum. b) Find the optimal debt-to-equity ratio. c) Seek
Valuation: Measuring and Managing the Value of Companies 6th Edition
563749
Exam Prep
978-1118873700 Test Bank Chapter 10
McKinsey/Valuation 59 Chapter: Chapter 10: Analyzing Performance True/False 1. Since profit is measured over an entire year, whereas capital is measured at only one point in time, it is recommended that return on invested capital (ROIC) use the average of starting and ending
Valuation: Measuring and Managing the Value of Companies 6th Edition
563750
Exam Prep
978-1118873700 Test Bank Chapter 11
McKinsey/Valuation 70 McKinsey/Valuation 70 McKinsey/Valuation 70 Chapter: Chapter 11: Forecasting Performance Multiple Choice Multiple Choice Multiple Choice 1. The explicit forecast period must be long enough for the company to reach a steady state. Which of the following is NOT a
Valuation: Measuring and Managing the Value of Companies 6th Edition
563751
Exam Prep
978-1118873700 Test Bank Chapter 12
McKinsey/Valuation 79 Chapter: Chapter 12: Estimating Continuing Value Multiple Choice 1. Given the following inputs, compute the continuing value (CV) at time t in the economic- profit model. At time t invested capital equals $2,000 and ROIC equals 12 percent. The forecast for NOPLATt+1
Valuation: Measuring and Managing the Value of Companies 6th Edition
563752
Exam Prep
978-1118873700 Test Bank Chapter 13
McKinsey/Valuation 85 McKinsey/Valuation 85 McKinsey/Valuation 85 Chapter: Chapter 13: Estimating the Cost of Capital Multiple Choice Multiple Choice Multiple Choice 1. A firm has a target debt-to-equity ratio of 1. Its cost of equity equals 12 percent, the cost of debt is
Valuation: Measuring and Managing the Value of Companies 6th Edition
563753
Exam Prep
978-1118873700 Test Bank Chapter 14
McKinsey/Valuation 96 Chapter: Chapter 14: Moving from Enterprise Value to Value per Share Multiple Choice 1. In estimating value per share of common stock of a company, for which of the following is book value a reasonable approximation for evaluating the asset or liability?
Valuation: Measuring and Managing the Value of Companies 6th Edition
563754
Exam Prep
978-1118873700 Test Bank Chapter 15
McKinsey/Valuation 102 McKinsey/Valuation 102 McKinsey/Valuation 102 Chapter: Chapter 15: Analyzing the Results Short Answer 1. List the criteria for assessing whether a model is technically robust with respect to the following three perspectives: unadjusted financial statements, rearranged financial statements, and statement of cash flows.
Valuation: Measuring and Managing the Value of Companies 6th Edition
563755
Exam Prep
978-1118873700 Test Bank Chapter 16
McKinsey/Valuation 109 McKinsey/Valuation 109 McKinsey/Valuation 109 Chapter: Chapter 16: Using Multiples Multiple Choice 1. Assuming the tax rate remains constant, what will be the effect on the value-to-EBITA ratio of doubling the following inputs: growth, ROIC, and WACC? a) The value-to-EBITA ratio will fall,
Valuation: Measuring and Managing the Value of Companies 6th Edition
563756
Exam Prep
978-1118873700 Test Bank Chapter 17
McKinsey/Valuation 114 Chapter: Chapter 17: Valuation by Parts Multiple Choice 1. Which of the following are issues in the creation of the financial statements for business units? I. Allocating corporate overhead costs. II. Dealing with intercompany transactions. III. Estimating unit betas. IV. Dealing with
Valuation: Measuring and Managing the Value of Companies 6th Edition
563757
Exam Prep
978-1118873700 Test Bank Chapter 18
McKinsey/Valuation 119 Chapter: Chapter 18: Taxes Multiple Choice 1. Which of the following concerning operating taxes are true? I. With full information, operating taxes can be computed without error. II. The effects of research and development (R&D) should be removed from operating taxes. III.
Valuation: Measuring and Managing the Value of Companies 6th Edition
563758
Exam Prep
978-1118873700 Test Bank Chapter 19
McKinsey/Valuation 124 Chapter: Chapter 19: Nonoperating Items, Provisions, and Reserves Multiple Choice 1. Which of the following are typical nonoperating expenses? I. Amortization expense. II. Restructuring charges. III. Litigation expenses. IV. Purchased research and development (R&D). a) I and II only. b) I, II,
Valuation: Measuring and Managing the Value of Companies 6th Edition
563759
Exam Prep
978-1118873700 Test Bank Chapter 2
McKinsey/Valuation 6 Chapter: Chapter 02: Fundamental Principles of Value Creation True/False 1. Since value is based on discounted cash flows, a company or an investor need not analyze growth and return on invested capital (ROIC). Ans: [False] Response: [Although the discounted cash flow
Valuation: Measuring and Managing the Value of Companies 6th Edition
563760
Exam Prep
978-1118873700 Test Bank Chapter 20
McKinsey/Valuation 129 Chapter: Chapter 20: Leases and Retirement Obligations True/False 1. The most common forms of off-balance-sheet debt are operating leases, securitized receivables, and unfunded retirement obligations. Ans: [True] Response: [] Multiple Choice Ans: [True] Response: [] Multiple Choice Ans: [True] Response: []
Valuation: Measuring and Managing the Value of Companies 6th Edition
563762
Exam Prep
978-1118873700 Test Bank Chapter 21
McKinsey/Valuation 138 McKinsey/Valuation 138 McKinsey/Valuation 138 Chapter: Chapter 21: Alternative Ways to Measure Return on Capital Multiple Choice 1. According to U.S. Generally Accepted Accounting Principles (GAAP), which of the following must be expensed? I. A patent developed by the firm. II. A building.
Valuation: Measuring and Managing the Value of Companies 6th Edition
563763
Exam Prep
978-1118873700 Test Bank Chapter 22
McKinsey/Valuation 143 McKinsey/Valuation 143 McKinsey/Valuation 143 Chapter: Chapter 22: Inflation Multiple Choice 1. Given the following information, compute free cash flow (FCF) in real terms: real growth is 3 percent, real ROIC is 12 percent, real NOPLAT is $5,000, real net working capital from
Valuation: Measuring and Managing the Value of Companies 6th Edition
563764
Exam Prep
978-1118873700 Test Bank Chapter 23
McKinsey/Valuation 148 Chapter: Chapter 23: Cross-Border Valuation Multiple Choice Multiple Choice Multiple Choice 1. An analyst is using U.S. Generally Accepted Accounting Principles (GAAP) to estimate the value of a subsidiary of a U.S. firm, and the country of the subsidiary is
Valuation: Measuring and Managing the Value of Companies 6th Edition
563765
Exam Prep
978-1118873700 Test Bank Chapter 24
McKinsey/Valuation 154 Chapter: Chapter 24: Case Study: Heineken Multiple Choice 1. Which of the following are NOT recommended in the treatment of depreciation, amortization, and impairments in the calculation of NOPLAT? a) Separate any impairments from income on nonconsolidated investments. b) Combine depreciation of
Valuation: Measuring and Managing the Value of Companies 6th Edition
563766
Exam Prep
978-1118873700 Test Bank Chapter 25
Chapter: Chapter 25: Corporate Portfolio Strategy Multiple Choice Multiple Choice Multiple Choice 1. Which of the following are valid reasons a given firm might be the best owner of a particular business? I. Unique links with other businesses (e.g., distribution lines). II.
Valuation: Measuring and Managing the Value of Companies 6th Edition
563767
Exam Prep
978-1118873700 Test Bank Chapter 26
Chapter: Chapter 26: Performance Management Multiple Choice 1. Which of the following value drivers is a short-term driver as opposed to a medium-term driver? a) Asset health. b) Commercial health. c) Capital productivity. d) Cost structure health. Ans: [c] Response: [] Ans: [c]
Valuation: Measuring and Managing the Value of Companies 6th Edition
563768
Exam Prep
978-1118873700 Test Bank Chapter 27
Chapter: Chapter 27: Mergers and Acquisitions Multiple Choice 1. The analysis of cost savings requires an industry-specific business system. Which of the following are requirements of an insightful industry-specific business system? I. It uses a top-down approach. II. It uses detail to identify the
Valuation: Measuring and Managing the Value of Companies 6th Edition
563769
Exam Prep
978-1118873700 Test Bank Chapter 28
Chapter: Chapter 28: Divestitures Multiple Choice Multiple Choice Multiple Choice 1. Which of the following is the best name for a distribution of all shares in a subsidiary to existing shareholders of the parent company? a) Carve-out. b) Spin-off. c) Split-off. d)
Valuation: Measuring and Managing the Value of Companies 6th Edition
563770
Exam Prep
978-1118873700 Test Bank Chapter 29
Chapter: Chapter 29: Capital Structure, Dividends, and Share Repurchases Multiple Choice 1. For a given firm, which of the following is most likely to be the result of lower leverage? a) Corporate overinvestment. b) Increased investor conflicts. c) Tax savings for the firm. d)
Valuation: Measuring and Managing the Value of Companies 6th Edition
563771
Exam Prep
978-1118873700 Test Bank Chapter 3
McKinsey/Valuation 10 McKinsey/Valuation 10 McKinsey/Valuation 10 Chapter: Chapter 03: Conservation of Value and the Role of Risk True/False 1. The conservation of value principle states that anything that does not increase cash flows does not increase value. Ans: [True] Response: [] Ans: [True]
Valuation: Measuring and Managing the Value of Companies 6th Edition
563772
Exam Prep
978-1118873700 Test Bank Chapter 30
Chapter: Chapter 30: Investor Communications Multiple Choice 1. In comparing growth versus value stocks, which of the following is NOT true? a) Most stocks labeled as growth stocks have higher ROICs. b) Most managers would like their firms to be growth stocks. c) Growth
Valuation: Measuring and Managing the Value of Companies 6th Edition
563773
Exam Prep
978-1118873700 Test Bank Chapter 31
Chapter: Chapter 31: Emerging Markets Multiple Choice 1. For emerging markets, the recommended market input for computing beta is: a) A small-cap index. b) A median-cap index. c) A global market index. d) An index of non-investment-grade bonds. Ans: [c] Response: [] Ans:
Valuation: Measuring and Managing the Value of Companies 6th Edition
563774
Exam Prep
978-1118873700 Test Bank Chapter 32
Chapter: Chapter 32: Valuing High-Growth Companies Multiple Choice 1. When looking into the future, the analyst should define a point in the future where the companys performance is likely to stabilize. The conditions at that point should be defined and bounded by measures of
Valuation: Measuring and Managing the Value of Companies 6th Edition
563775
Exam Prep
978-1118873700 Test Bank Chapter 33
Chapter: Chapter 33: Cyclical Companies Multiple Choice 1. Which of the following are true concerning the properties of consensus earnings forecasts for cyclical companies? I. They account for the cyclical nature of the firm. II. Discounted cash flow (DCF) models are usually consistent with
Valuation: Measuring and Managing the Value of Companies 6th Edition
563776
Exam Prep
978-1118873700 Test Bank Chapter 34
Chapter: Chapter 34: Banks Multiple Choice 1. For financial institutions, which of the following is NOT true concerning trading income? a) It has been on the decline over the past 30 years. b) It is typically fairly volatile from year to year. c) It
Valuation: Measuring and Managing the Value of Companies 6th Edition
563777
Exam Prep
978-1118873700 Test Bank Chapter 35
Chapter: Chapter 35: Flexibility True/False 1. Regardless of the level of uncertainty, it is possible to value assets or a project using a standard discounted cash flow (DCF) approach or a stochastic simulation. However, in cases when managers can decide among different alternatives in
Valuation: Measuring and Managing the Value of Companies 6th Edition
563778
Exam Prep
978-1118873700 Test Bank Chapter 4
McKinsey/Valuation 16 Chapter: Chapter 04: The Alchemy of Stock Market Performance Multiple Choice 1. Which of the following represents the minimum horizon where the focus of managers on improving total returns to shareholders (TRS) to win performance bonuses will align their interests and the
Valuation: Measuring and Managing the Value of Companies 6th Edition
563779
Exam Prep
978-1118873700 Test Bank Chapter 5
McKinsey/Valuation 24 Chapter: Chapter 05: The Stock Market Is Smarter Than You Think True/False 1. Changes in expectations will rarely have a larger impact on realized total returns to shareholders (TRS) than actual performance over periods longer than a year or one operating cycle.
Valuation: Measuring and Managing the Value of Companies 6th Edition
563780
Exam Prep
978-1118873700 Test Bank Chapter 6
McKinsey/Valuation 34 McKinsey/Valuation 34 McKinsey/Valuation 34 Chapter: Chapter 06: Return on Invested Capital Multiple Choice 1. Which of the following is NOT one of Michael Porters five forces? a) Threat of entry. b) Regulatory restrictions. c) Bargaining power of buyers. d) Bargaining power
Valuation: Measuring and Managing the Value of Companies 6th Edition
563781
Exam Prep
978-1118873700 Test Bank Chapter 7
McKinsey/Valuation 39 McKinsey/Valuation 39 McKinsey/Valuation 39 Chapter: Chapter 07: Growth Multiple Choice 1. Which of the following is most accurate concerning corporate growth rates? a) High growth rates decay quickly, and large companies struggle to grow. b) High growth rates are sustainable for 10
Valuation: Measuring and Managing the Value of Companies 6th Edition
563782
Exam Prep
978-1118873700 Test Bank Chapter 8
McKinsey/Valuation 45 McKinsey/Valuation 45 McKinsey/Valuation 45 Chapter: Chapter 08: Frameworks for Valuation Multiple Choice 1. The framework for valuation that compresses free cash flow and the interest tax shield into one number, making it difficult to compare operating performance among companies and over time,
Valuation: Measuring and Managing the Value of Companies 6th Edition
563783
Exam Prep
978-1118873700 Test Bank Chapter 9
McKinsey/Valuation 51 Chapter: Chapter 09: Reorganizing the Financial Statements Multiple Choice 1.Which of the following would result in a change in operating deferred-tax assets or liabilities? I. State income taxes. II. Changes in goodwill. III. Accrued self-insurance liabilities. IV. Accelerated inventory deduction. a) I
Valuation: Measuring and Managing the Value of Companies 6th Edition

Trusted by Thousands of
Students

Here are what students say about us.

Resources
Company
Legal

Copyright ©2022 All rights reserved. | CoursePaper is not sponsored or endorsed by any college or university.