Reading 07 discounted cash flow applications questions and answers

1 ÿ7ÿ6231ÿ 2ÿÿ 32ÿ 123ÿÿÿ 0123ÿ567ÿ89 98 !"#$%&'(ÿ*+,ÿ-./000 6ÿ789&::ÿ;&%=?#ÿ@=:"#ÿ'>ÿA.BBCBBBÿ=(Dÿ.-BÿD=E$ÿ"(%&:ÿF=%"G&%Eÿ&$ÿ$#::&(Hÿ>'GÿAI0CBBBJÿK=4ÿL=)ÿ3)ÿNO5''5 I3)ÿÿ0)ÿG=),ÿLÿ44ÿHLÿL=)ÿ3)ÿN''5''ÿ=7L5 PL)ÿ=)ÿÿ)==7ÿ7ÿ)ÿ=Q5 )/ÿG=)ÿ,ÿLÿ7Kÿ1=>ÿ=ÿNO5''ÿ1)ÿL=)ÿ>J>>5ÿÿG=)ÿ,ÿLÿ7Kÿ1=>ÿ=ÿN5O'ÿ1)ÿL=)ÿ>J>>5ÿPLÿJ)Rÿ)S)> ))ÿÿ6OT5ÿ-)ÿ0GUM/L>ÿ))ÿÿVWXYZY[ÿ[X]  !5&T5 " #!U5OT5 " $!^5T5 (Q14== Pÿ>)0ÿLÿ0GÿM/L>ÿ)=ÿ3ÿ)),ÿÿG)ÿ7=474=)Rÿ7=Lÿ34Mÿ=>ÿ22ÿ375ÿPLÿ7=Lÿ34Mÿ=)ÿ=ÿ344M *+'ÿ=4ÿ7=Lÿ34Mÿ3)ÿ1)7L=ÿ_ÿNO'ÿ *+ÿ>J>>ÿ34Mÿ3ÿNOÿUÿ7=Lÿ34Mÿ3)ÿ=>>=4ÿ1)7L=ÿ3ÿNOÿ_ÿÿ7=Lÿ34Mÿ3ÿUN'ÿ *+ÿ>J>>ÿ34Mÿ`ÿaÿN5O'ÿ_ÿNObÿcÿ7=Lÿ34Mÿ3)0ÿ=4ÿ`ÿaÿN''ÿ_ÿN''bÿ_ÿÿ7=Lÿ34Mÿ3ÿNO ()ÿLÿ7=Lÿ34Mÿ=>ÿ701ÿ22ÿ *+'ÿ_ÿUO'dÿ*+ÿ_ÿU'dÿ*+ÿ_ÿcOdÿ*ePÿ22ÿ_ÿ5^' 23)7 01234567ÿ896:;ÿ.ÿÿ/ÿÿ A2BC42DÿEC4295CB; FGÿ*71ÿHGÿ?@ 01234567ÿ9%ÿ6ÿ 3ÿLÿ0Gÿ0=)KÿG4>ÿÿ65&Tÿÿ=ÿPUH44ÿMLÿ&ÿ>=Gÿÿ0=)G,ÿML=ÿÿLÿL4>/ÿ1)>ÿG4>f ÿÿ&'' 12'("')*ÿ'('$)( 42+( )*ÿ+("")( 52+($,)*ÿ+(#,)( -./011 23ÿ-45ÿ16ÿ3ÿ3078ÿ/97ÿ:07ÿ17ÿ110;ÿÿÿ3ÿ(*+'Xÿÿ3ÿ(*+'ÿ03ÿA,;ÿ035ÿ03';ÿ>*6ÿ53,ÿÿ3ÿ=*3* 2ÿS..7ÿ03;ÿ3ÿ0=0*ÿ9):T.ÿ