Assessment Review - Corporate Finance Institute-41-50

9/19/21, 4:37 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 1/20
41 Suppose you have inserted a line on a PowerPoint slide. The line is selected, and you are currently editing the line on
the Format tab under Drawing Tools. Which of the following measurements for height and width (respectively) would
make the line completely horizontal?
Your Answer 0cm; 75cm
Correct Answer 0cm; 75cm
Explanation
To align a line horizontally, the height dimension of a line must be set to 0cm. The width dimension only determines the
length of the line.
42 A precedent transactions overview would appear under which section of an investment banking pitchbook?
Your Answer Valuation Overview
Correct Answer Valuation Overview
Explanation
Precedents is a valuation methodology, so it makes logical sense for it to be under the valuation overview. Transaction
opportunities highlights recommendations the investment bankers give for possible future company transactions.
43 Please sort the following into PEST Analysis, Porter's 5 Forces, Competitive Advantage Analysis and SWOT Analysis
Weaknesses
Your Answer SWOT Analysis
Correct Answer SWOT Analysis
Economic Forecasting
Your Answer PEST
Correct Answer PEST
Cost Leadership
Your Answer Competitive Advantage Analysis
Correct Answer Competitive Advantage Analysis
Differentiation
Your Answer Competitive Advantage Analysis
Correct Answer Competitive Advantage Analysis
Social Forecasting
Your Answer PEST
Correct Answer PEST
Opportunities
Your Answer SWOT Analysis
Correct Answer SWOT Analysis
Potential new entrants and barriers to entry
Your Answer Porter's 5 Forces
Correct Answer Porter's 5 Forces
Technological Forecasting
Your Answer PEST
Correct Answer PEST
Suppliers and their bargaining power
Your Answer Porter's 5 Forces
Correct Answer Porter's 5 Forces
Explanation
Please review the Discounted Cash Flow (DCF) Analysis section.
Comparable Company & Precedent Transactions
44 Company A has 279,000 basic shares outstanding and 26,000 outstanding options and warrants. The exercise price of
these options is $3.75. The company also has $200,000 of convertible bonds with an effective conversion price of
$4.00. The average market share price for the reporting period is $7.50. What is the diluted shares outstanding using
the treasury stock method & if-converted methods?
Your Answer 342,000
Correct Answer 342,000
Explanation
Additional shares issued if options are converted = 26,000 - (26,000 x $3.75 / $7.50) = 13,000
Shares issued if convertible bonds are converted = $200,000 / $4.00 = 50,000
Diluted shares outstanding = Basic shares outstanding + Dilution from options + Dilution from convertible debt = 279,000 +
13,000 + 50,000 = 342,000
Transaction Costs
45 Total expected equity financing for Amazon’s purchase of Walmart, at the assumed 50-50% equity and debt financing
deal mix provided, is as follows:
Your Answer $241,356
Correct Answer $241,356
Explanation
None.
46 Total transaction costs, based on the assumptions provided, are expected to be:
Your Answer $22,002
Explanation
None.
Pro-forma Adjustments
47 The incremental annual depreciation expense as a result of Amazon’s acquisition of Facebook, is expected to be:
Your Answer $36,847
Explanation
None.
48 Additional annual interest expense due to new debt issued in relation to the transaction is:
Your Answer $7,482
Explanation
None.
Merger Model
49 The implied enterprise value of Snap Inc., calculated using the assumptions and acquisition premium provided, is:
Your Answer $91,669
Explanation
None.
50 The expected pro-forma share price of Amazon is expected to be:
Your Answer $3,099.40
Correct Answer $3,099.40
Explanation
None.
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9/19/21, 4:37 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 0cm; 75cm

Correct Answer 0cm; 75cm

Your Answer Valuation Overview

Correct Answer Valuation Overview

Your Answer SWOT Analysis

Correct Answer SWOT Analysis

Your Answer PEST

Correct Answer PEST

Your Answer Competitive Advantage Analysis

Correct Answer Competitive Advantage Analysis

Your Answer Competitive Advantage Analysis

Correct Answer Competitive Advantage Analysis

Your Answer PEST

Correct Answer PEST

Your Answer SWOT Analysis

Correct Answer SWOT Analysis

Potential new entrants and barriers to entry

Your Answer Porter's 5 Forces

Correct Answer Porter's 5 Forces

Your Answer PEST

Correct Answer PEST

Suppliers and their bargaining power

Your Answer Porter's 5 Forces

Correct Answer Porter's 5 Forces

Comparable Company & Precedent Transactions

Your Answer 342,000

Correct Answer 342,000

Shares issued if convertible bonds are converted = $200,000 / $4.00 = 50,000

Your Answer $241,356

Correct Answer $241,356

Your Answer $22,002

Correct Answer $22,002

Your Answer $36,847

Correct Answer $36,847

Your Answer $7,482

Correct Answer $7,482

Your Answer $91,669

Correct Answer $91,669

50 The expected pro-forma share price of Amazon is expected to be:

Your Answer $3,099.40

Correct Answer $3,099.40

Summary Prev Page

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

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