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Question 1048  duration, sensitivity analysis, WACC

Canaccord conducts a sensitivity analysis of the Israeli pharmaceutical firm InterCure's (INCR) estimated share price in figure 33 on page 30:

Canaccord2021_INCR_SensitivityAnalysis_Page30_Figure33

https://canaccordgenuity.bluematrix.com/sellside/EmailDocViewer?encrypt=a555719b-412b-4cc7-8528-505c27fb1e82&mime=PDF&co=Canaccordgenuity&id=mbottomley@cgf.com&source=libraryview&htmlToPdf=ture

Estimate the Macaulay duration of INCR's equity. The Macaulay duration is approximately:



Question 1049  sensitivity analysis, WACC, DDM

An analyst has prepared a discounted cash flow model to value a firm's share price. A sensitivity analysis data table with ‘conditional formatting’ shading is shown below. The table shows how changes in the weighted average cost of capital (WACC, left column) and terminal value growth rate (top row) affect the firm's model-estimated share price.

SensitivityAnalysis

The base case estimates are shown in bold.

Which of the following statements is NOT correct? The model-estimated share price would normally be expected to: