Assessment Review Fmva Practice Exam PDF

14/07/2022, 23:51 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=AF2D62694CE8455D9076ED7BBDC25345&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 4.8x
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 The purpose of the income statement is to:
Your Answer Show the revenues, expenses and operating profit for the financial year
Correct Answer Show the revenues, expenses and operating profit for the financial year
Explanation
None.
14 What is an advantage to using a multi-step income statement?
Your Answer Net Income is shown before income taxes
Correct Answer Direct expenses and indirect expenses are broken out separately
Explanation
None.
15
Given the above screenshot, which of the following is the resulting value in cell G2?
Your Answer 9/30/2017
Correct Answer 12/31/2020
Explanation
=Date(2017+3,12,31)
=Date(2020,12,31)
=12/31/2020
16 Which of the following debt repayment profiles involves a growing principal amount over time?
Your Answer Pay in kind debt
Correct Answer Pay in kind debt
Explanation
Pay in kind debt does not involve regular interest payments. All interest payments are accrued throughout the life of the loan and all interest
payments, along with the principle, are paid at maturity.
17 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
18 In the simple linear regression equation y = α + βx + ε, what is β?
Your Answer The slope of the line of best fit
Correct Answer The slope of the line of best fit
Explanation
β is the slope of the best fit line, and is often called the coefficient of this variable.
19 Which ratio would you use to determine the profitability of the goods sold by a company?
Your Answer Gross profit margin
Correct Answer Gross profit margin
Explanation
Profitability from goods sold is determined by gross profit margin, which is (revenue - cost of goods sold) / Sales.
20 Based on the following information from ABC Company’s financial analysis, which one of the following statements is NOT true?
Ratio Year 1 Year 2 Year 3 Year 4 Year 5

Debt to equity 0.05 0.02 0.01 0.01 0.02
Operating income ratio 15.9% 18.6% 17.5% 19.6% 21.3%
Payable turnover ratio 9.75 10.63 11.24 13,15 13.52
Inventory turnover ratio 6.31 5.76 7.28 10.53 15.36
Gross profit ratio 58.3% 52.3% 46.9% 49.5% 41.3%
Net profit ratio 13.2% 15.2% 14.1% 15.9% 16.4%
Current ratio 7.35 4.96 3.28 2.65 3.14
Your Answer The company is selling their inventory faster over the five years.
Correct Answer The company’s ability to cover its short-term obligations is getting higher over the five years.
Explanation
Inventory turnover ratios measures how quickly the company sells the inventory. The higher the ratio, the quicker the company is at selling its
inventory.
Debt to equity ratio measures how much leverage the company has. When the ratio is very low, it means that the company has little debt and
maybe underleveraged.
Gross profit ratio shows how much revenue is left over after paying the cost of goods sold. When this ratio decreases, it means the company
is spending more on goods sold.
Current ratio measures the ability of a company to cover its short-term obligations. The lower the ratio, the lower ability the company has to
cover its short-term obligations.
Page 1 of 3
Summary Next Page
Go to Dashboard
Software by
Version 11.2
Privacy Policy. Assessment content is copyright 2022, Corporate Finance Institute.

Assessment Review Fmva Practice Exam PDF

Uploaded by

Copyright:

Available Formats

You might also like

Assessment Review Fmva Practice Exam PDF

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Assessment Review Fmva Practice Exam PDF

Uploaded by

Copyright:

Available Formats

14/07/2022, 23:51 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 4.8x

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%

13 The purpose of the income statement is to:

14 What is an advantage to using a multi-step income statement?

Your Answer Net Income is shown before income taxes

Your Answer 9/30/2017

Correct Answer 12/31/2020

Your Answer Pay in kind debt

Correct Answer Pay in kind debt

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

Your Answer Revolver

Correct Answer Revolver

18 In the simple linear regression equation y = α + βx + ε, what is β?

Your Answer The slope of the line of best fit

Correct Answer The slope of the line of best fit

Your Answer Gross profit margin

Correct Answer Gross profit margin

Ratio Year 1 Year 2 Year 3 Year 4 Year 5

is spending more on goods sold.

Summary Next Page

Privacy Policy. Assessment content is copyright 2022, Corporate Finance Institute.

You might also like