1) What is LBO model? 2) What is DCF valuation? 3) What is the relationship between balance sheet, income statement, and cash flow statement? 4) if you have to choose any 2 financial statements to evaluate the company, which is you choose. 5) what is Current ratio 6) what is solvency ratio 7) what is DSER

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Answers to various financial analysis questions including LBO model, DCF valuation, financial statements relationship, current ratio, solvency ratio, and DSER.

LBO model stands for Leveraged Buyout model, used in acquisitions where a significant amount of debt is used to finance the purchase.
DCF valuation is Discounted Cash Flow valuation, a method used to estimate the value of an investment based on its expected future cash flows.
Balance sheet shows a company's assets, liabilities, and equity at a specific point in time. Income statement shows revenues, expenses, and profits over a period. Cash flow statement shows the inflows and outflows of cash.
The two financial statements typically used to evaluate a company are the income statement and the balance sheet.
Current ratio is a financial ratio that measures a company's ability to pay its short-term obligations with its short-term assets. Formula: Current Assets / Current Liabilities.
Solvency ratio is a financial ratio that measures a company's ability to meet its long-term debts. Formula: Total Assets / Total Liabilities.
DSER stands for Debt Service Coverage Ratio, a financial ratio that measures a company's ability to cover its debt payments. Formula: Net Operating Income / Total Debt Service.

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