Corporate Finance (FIN 201) DCF Terminal Value, WACC, and Sensitivity Practice Problems
New York University
Corporate Finance (FIN 201) | Practice Problems

Overview
A practice problem pack on building a DCF, computing terminal value, estimating WACC, and stress-testing assumptions.

Key topics
•free cash flow forecast basics
•terminal value methods
•WACC components and weights
•sensitivity tables and tornado drivers
•enterprise vs equity value bridge

Suggested study tasks
•compute WACC from cost of equity and debt
•calculate terminal value using perpetuity growth
•build a simple DCF to enterprise value
•run two sensitivities for growth and discount rate

Common pitfalls
•mixing nominal and real rates
•double-counting debt or cash in equity bridge
•using inconsistent time periods
•assuming terminal value is always a small component