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CFI FMVA – 3: QUESTION WITH ACCURATE ANSWERS
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CFI FMVA – 3: QUESTION WITH ACCURATE ANSWERS
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CFI FMVA – 3: QUESTION WITH ACCURATE ANSWERSWhat is a reason for corporations to use debt in capital financing? Right
Ans - To lower the cost of capital
What is the function of Trace Precedents? Right Ans - Trace cells that
provide data to the formula in the selected cell
In valuation which of the following is an advantage of comparable company
analysis? Right Ans - There are a large number of potential companies to
compare to
Cells are __ by default, so before protecting a worksheet you must __ Right
Ans - unlocked; lock the formula cells*gross profit mas
Which ratio would you use to determine how much profit a company makes
after paying off its cost of goods sold? Right Ans - gross profit margin ratio
Which of the following is not a best practice of designing your powerpoint
presentation? Right Ans - use different fonts and colors throughout the
presentation
Which of the following items are not considered when calculating the income
from operations? Right Ans - Interest
which of the following is the correct ordering of the capital stack (from most
secure to least secure)? Right Ans - Term loan - high yield binds - common
shares
When r=-0.99, the relationship between two sets of variables is Right Ans -
strong negative
in powerpoint, which tab of the ribbon would you use to insert a fade on a
textbox during the presentation? Right Ans - Animations
What could be the yield to maturity for a 3 year bond with a 8% annual
coupon if the bond is trading at discount? Right Ans - 9%
, what is the net present value of the project based on the information below?
20,000, 5,000, 8,000, 12,000, 8% Right Ans - 1,014
Calculate the debt to tangible net worth ratio based on the information below:
5,000, 3,000, 1,700, 500 Right Ans - 0.68 (interest bearing liabilities/Total
assets - Equity + IA)
Which of the following does not describe a strategic buyer in M&A
transactions Right Ans - they use leverage for maximum equity returns
In excel, how do you insert a chart in a selected cell like the image below?
Right Ans - insert - sparklines - column
A company has annual sales of 32000 and accounts receivables of 2200. The
gross profit margin is 31.3%. The receivable days estimated from the data
above is Right Ans - 25.1
A firm generated annual revenue of 75000 and has accounts payable of 3260.
The gross profit margin is 23.3%. The payable days estimated from the data
above is closest to Right Ans - 21 (use COGS instead of rev)
In excel the yearfrac functions calculates Right Ans - the fraction of the year
represented by the number of whole days between two dates (start date and
end date)
Calculate the companys breakeven point revenue based on the information
below Right Ans - 3077 (fixed costs / Contribution margin)
you would use a scenario analysis when Right Ans - comparing different
business cases about the future with multiple variables changed
what formula below is commonly used to forecast accounts payable Right
Ans - Accounts payable = cost of sales x payable days /365)
Based on the information provided, calculate the revenue variance percentage
and determine whether it is favorable or unfavorable. Right Ans - -6.4%
(actual - budgeted / budgeted)
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