Q: Cash, dividends and company value lecture & readings

  1. Why companies sometimes prefer share re-purchase to dividends? Name at least 3 reasons.

  2. Why companies prefer to pay high dividends? Name at least 2 reasons.

  3. How does excess cash affect the liquidity ratios of a company?

  4. How does excess cash affect ROA of a company?

  5. How cash should be treated in FCFF valuation?

  6. Which price multiples can be used in company valuation? Provide formulas for at least 3 and provide explanation to their interpretation.

  7. Which enterprise value multiples can be used in company valuation? Provide formulas for at least 3 and provide explanation to their interpretation.

  8. How method of comparables can be used in company valuation?


Last modified: Tuesday, 26 June 2018, 1:33 PM