Assessment Review - Corporate Finance Institute-1-20

9/19/21, 4:36 PM Assessment Review - Corporate Finance Institute
FMVA Practice Exam
Below is a scored review of your assessment. All questions are shown.
Correct Answer Partially Correct Incorrect Answer
https://cfi.onlinetests.app/Assess.aspx?guid=336D4D99CA304F228A104958FBFACA23&a=R1 1/22
1 What is Gross Profit in 2028E using the assumptions listed above and on the Control Panel?
Your Answer $17,545
Correct Answer $17,545
Explanation
None.
2 What is EBITDA in 2022E using the assumptions listed above and on the Control Panel?
Your Answer $18,911
Explanation
None.
3 What is Cash Generated From Operating Activities in 2025E using the assumptions listed above and on the Control
Panel?
Your Answer $13,523
Explanation
None.
4 What is the PP&E balance in 2030E using the assumptions listed above and on the Control Panel?
Your Answer $136,122
Explanation
None.
5 What is the cash ratio in 2025E using the assumptions listed above and on the Control Panel?
Your Answer 4.9x
Correct Answer 4.9x
Explanation
None.
6 What is the margin impact ratio in 2026E using the assumptions listed above and on the Control Panel?
Your Answer 0.19x
Correct Answer 0.19x
Explanation
None.
7 What is the cash turnover ratio in 2029E using the assumptions listed above and on the Control Panel? Is it higher or
lower than the same ratio in 2020?
Your Answer 1.68x; higher
Correct Answer 1.68x; higher
Explanation
None.
8 What is the risk-free rate?
Your Answer 2.5%
Correct Answer 2.5%
Explanation
None.
9 Based on a discounted cash flow analysis and using the WACC as the discount rate, what is the implied equity value of
Company XYZ on January 1, 2021?
Your Answer $73,712
Explanation
None.
10 What is the implied equity value at the transaction date (June 15, 2024) based on a discounted cash flow analysis using
the WACC as the discount rate, and assuming $50 million of cash and zero debt?
Your Answer $95,102
Explanation
None.
11 Assuming an investment is made on June 15, 2024 in an amount equal to 1.5x the equity value at that date, what is
the investor IRR?
Your Answer -6.30%
Correct Answer -6.30%
Explanation
None.
12 Assuming an investment is made on June 15, 2024 in an amount equal to 1.5x the equity value at that date, what is
the equity IRR if the investment is funded with 70% debt?
Your Answer 12.0%
Correct Answer 12.0%
Explanation
None.
13 If Gamma Limited has net income of 130, a depreciation expense of 60, an accounts receivable decrease of 20 over
last period, and an accounts payable increase of 10 over last period, what is the company's net operating cash flows.
Your Answer 180
Correct Answer 220
Explanation
Net operating cash flow = 130 + 60 + 20 + 10 = 220
14 What would you find on the Management's Discussion and Analysis (MD&A) Section of an Annual Report?
Your Answer All of the above
Correct Answer All of the above
Explanation
None.
15 According to the information mentioned in the course, which of the following color schemes is best practice for
financial modeling?
Your Answer Hard Codes in Blue, Formulas in Black
Correct Answer Hard Codes in Blue, Formulas in Black
Explanation
In best practice, hard codes are in blue while formulas are in black. Furthermore, functions referenced in to other sheets are
in green.
16 Which of the following is NOT a form of subordinated debt?
Your Answer Revolver
Correct Answer Revolver
Explanation
A revolver is a type of senior debt
17 Which of the following M&A transaction equations is correct?
Your Answer Value created = Stand-alone value + Net synergies – Transaction costs
Correct Answer Value created = Stand-alone value + Net synergies – Consideration (price paid)
Explanation
None.
18 If the present value of a growing perpetuity is 214, the required rate of return is 10%, and growth rate is 3%, what is
the cash flow in year 1? (Round to the nearest whole number).
Your Answer 3057
Correct Answer 15
Explanation
C = PV x (r-g), so C = 214 x (0.10-0.03) = 15
19 Which of the following is a tertiary ratio that drives profitability?
Your Answer EBIT / Sales
Correct Answer SG&A Expense / Sales
Explanation
Only SG&A Expense / Sale is a tertiary ratio.
20 The net profit margin ratio can mathematically be broken down as "Tax impact x Capital structure impact x..."
Your Answer EBIT / Sales
Correct Answer EBIT / Sales
Explanation
Net profit margin ratio = Tax impact x Capital structure impact x Margin impact
Margin Impact = EBIT / Sales
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9/19/21, 4:36 PM Assessment Review - Corporate Finance Institute

FMVA Practice Exam

Below is a scored review of your assessment. All questions are shown.

Correct Answer Partially Correct Incorrect Answer

Your Answer $17,545

Correct Answer $17,545

Your Answer $18,911

Correct Answer $18,911

Your Answer $13,523

Correct Answer $13,523

Your Answer $136,122

Correct Answer $136,122

Your Answer 4.9x

Correct Answer 4.9x

Your Answer 0.19x

Correct Answer 0.19x

Your Answer 1.68x; higher

Correct Answer 1.68x; higher

8 What is the risk-free rate?

Your Answer 2.5%

Correct Answer 2.5%

Your Answer $73,712

Correct Answer $73,712

Your Answer $95,102

Correct Answer $95,102

Your Answer -6.30%

Correct Answer -6.30%

Your Answer 12.0%

Correct Answer 12.0%

Your Answer 180

Correct Answer 220

Your Answer All of the above

Correct Answer All of the above

Your Answer Hard Codes in Blue, Formulas in Black

Correct Answer Hard Codes in Blue, Formulas in Black

16 Which of the following is NOT a form of subordinated debt?

Your Answer Revolver

Correct Answer Revolver

17 Which of the following M&A transaction equations is correct?

Your Answer 3057

19 Which of the following is a tertiary ratio that drives profitability?

Your Answer EBIT / Sales

Correct Answer SG&A Expense / Sales

Your Answer EBIT / Sales

Correct Answer EBIT / Sales

Margin Impact = EBIT / Sales

Summary Next Page

Privacy Policy. Assessment content is copyright 2021, Corporate Finance Institute.

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