CFA Practice Question

There are 195 practice questions for this study session.

CFA Practice Question

Sensitivity analysis can be used to analyze the impact on company value. The factors an analyst can change are:

I. Terminal value.
II. Discount rate (or IRR).
III. Time to exit.
IV. Number of existing shares.
V. The investment by venture capitalist.
Correct Answer: I, II, III and V

The number of existing share has no effect on the real value of the target company.

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