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Which of the following is consistent with the views expressed in “Everything is a DCF Model?” 1. A recent survey found valuation multiples are used by professional equity analysts more often than DCF models. 2. Valuation multiples obscure rather than ignore fundamental value drivers. 3. Most of the firm’s estimated value is typically found in the continuing, or terminal, value.

Which of the following is not a characteristic of short selling?

You sell a put option on Apple’s stock with a $210 strike price for a premium of $15 on a per share basis. At expiration, Apple’s shares are selling for $200 per share. What profit or loss did your trade generate per share?

You work as a futures trader for a large financial institution and recently took a short position in S&P 500 e-mini futures. You sold 1,500 contracts with a futures price of 5,750, and the price of the index was 6,050 when the contract expired. How much cash did your company receive or pay given that the S&P 500 e-mini futures contracts have a multiplier of $50?

The free cash flow to the firm is reported as $335 million. The interest expense to the firm is $55 million. If the tax rate is 20%, and the net debt of the firm reduced debt by $75 million, what is the free cash flow to equity holders of the firm?

The “Days to Cover” measure is most relevant when ________, and it indicates ____________.

Which option strategy would be best for someone who wants to limit both the upside and downside risk of a position?

Assume you sell short 2,000 shares of stock at $275 per share with an initial margin of 60%. At what stock price would you receive a margin call if the maintenance margin is 35%?

In which of the following situations are you most likely to satisfy the SRA Financial Services (Conduct of Business) Rules (“the CoB Rules”) in relation to Insurance Distribution Activities?

What do you need to consider in deciding whether you can recommend or arrange the disposal of any of the investments under the Scope Rules?