Question of 5

A company wants to raise 15 crores in the debt:equity ratio of 1:4. The cost of debt is 10% and cost of equity is 5%. What is the WACC?

8%

6%

90 lacs

112.5 lacs

Valuation is NOT used for

Ascertaining the market price of the product

Ascertaining the market price of the company

Ascertaining the purchase price of a potential investment

Asset-based method of valuation is perfect for a restaurant chain startup.

False

True

Which of the following factors don't affect the PE Multiple?

Cyclicality of the industry

Cyclicality of governments

Cyclicality of product demand

In valuation parlance a football field is:

The layout of all possible valuations of a company in different scenarios

The entire process of a valuation project from start to end

Quiz - Valuation