What is the free cash flow

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Reference no: EM13971647

1) You are using your comparable company set to value Jimmy Jones & Co. The average EBITDA multiple of the comps is 7.0x Jimmy Jones' EBITDA is 200M, and their net debt is 50M. What is Jimmy Jones' impled equity value?

a) 200
b) 1,350
c) 1,400
d) 1,450

2) In a DCF, if EBIT is 100, the long term ETR is 30%, D&A is 25, capex is 15 and the increase in OWC is 7, what is the free cash flow that year?

a) 23
b) 73
c) 87
d) 97

3) In a DCF, if the target capital structure of Tony's Treats is 40.0% equity and 60.0% debt, the cost of equity is 10.0%, the cost of debt is 7.0%, and the MTR is 30.0%, what is the WACC?

a) 3.9%
b) 4.9%
c) 5.9%
d) 6.9%

4) In a LBO, if the entry equity is 100, exit equity is 200 and time period is 5 years, what is the IRR?

a) 12.9%
b) 13.9%
c) 14.9%
d) 15.9%

5) Which of the following is NOT an operating cash flow?

a) Increase in accounts receivable
b) Decrease in inventory
c) Net Income
d) Capex

Reference no: EM13971647

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