How does the VC method estimate exit values, and what are two standard corporate finance approaches to account for debt in valuation? O VCM relies on financial projections, while corporate finance uses DCF and CAPM. VCM uses comparable IPOS or acquisitions, while corporate finance uses APV and WACC. O VCM applies multipliers based on sales, EBIT, or net earnings, while corporate finance uses DCF and APV. O VCM considers enterprise performance, while corporate finance focuses on equity valuation.
How does the VC method estimate exit values, and what are two standard corporate finance approaches to account for debt in valuation? O VCM relies on financial projections, while corporate finance uses DCF and CAPM. VCM uses comparable IPOS or acquisitions, while corporate finance uses APV and WACC. O VCM applies multipliers based on sales, EBIT, or net earnings, while corporate finance uses DCF and APV. O VCM considers enterprise performance, while corporate finance focuses on equity valuation.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 5MC: Use B&M’s data and the free cash flow valuation model to answer the following questions:
What is its...
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![How does the VC method estimate exit values, and what are two standard corporate finance approaches to account for
debt in valuation?
O VCM relies on financial projections, while corporate finance uses DCF and CAPM.
VCM uses comparable IPOs or acquisitions, while corporate finance uses APV and WACC.
VCM applies multipliers based on sales, EBIT, or net earnings, while corporate finance uses DCF and APV.
VCM considers enterprise performance, while corporate finance focuses on equity valuation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F98a95248-6313-4124-8c48-8cf374831d55%2F008c1ba6-40a2-427e-bf82-6ca05cd27491%2Fzso8938_processed.png&w=3840&q=75)
Transcribed Image Text:How does the VC method estimate exit values, and what are two standard corporate finance approaches to account for
debt in valuation?
O VCM relies on financial projections, while corporate finance uses DCF and CAPM.
VCM uses comparable IPOs or acquisitions, while corporate finance uses APV and WACC.
VCM applies multipliers based on sales, EBIT, or net earnings, while corporate finance uses DCF and APV.
VCM considers enterprise performance, while corporate finance focuses on equity valuation.
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