FINANCIAL MODELING ACTUAL EXAM |40 COMPLETE AND GRADED QUESTIONS
AND ANSWERS 2026 LATEST UPDATED | 100% GRADED CORRECT | 100%
GUARANTEED TO PASS | GET A+
1. (Chapter 10) Compute the current value added by the firm using five equiva-
lent methods.: 1. Adjusted Present Value 2. Free cash flow equity 3. Free cash flow to the firm 4. Divided discount model
5. Residual income
2. (Chapter 10) Value of the unleveled Firm: Location: B117, Date 0
Excel Function:
3. (Chapter 10) List the five equivalent methods for firm valuation.: 1. Discount the Free
Cash Flow to the Firm at the Unlevered Cost of Equity Capital to get the Value of the Unlevered Firm-1..
2. Discount the Tax Shield Benefit at the Cost of Riskfree Debt to get the Value of the Tax Shield.
3. Add the Value of the Unlevered Firm and the Value of the Tax Shield to get the Value of the Firm.
4. Subtract the Date 0 Capital from the Value of the Firm to get the Value Added by the Firm.
4. (Chapter 10 ) Fully list all the broad steps for calculating the Value Added by the Firm with the FreeCash Flow to Equity
method in Figure 10.4: 1. Discount the Free
Cash Flow to Equity at the Levered Cost of Equity Capital to get the Value of Equity.
2. Discount the Cash Flow to Debtholders at the Cost of Riskfree Debt to get the Value of the Debt.
3. Add the Value of Equity and the Value of Debt to get the Value of the Firm.
4. Subtract the Date 0 Capital from the Value of the Firm to get the Value Added by the Firm.
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, 5. (Chapter 10) Fully list all the broad steps for calculating the Value Added by the Firm with the FreeCash Flow to
Firm method in Figure: Discount the Free Cash Flow to Firm at the Cost of Firm Capital (WACC) to get the Value of
Firm.
2. Subtract the Date 0 Capital from the Value of the Firm to get the Value Added by the Firm.
6. (Chapter 10) Fully list all the broad steps for calculating the Value Added by Firm with the Residual Income method
in...: 1. Calculate economic profit2. Determine the value
of economic profit (Present value)3. Add the book value of the firm4. Subtract initial investment
7. (Chapter 16) Based on the Data Table in Figure 16.5, is the project's Net
Present Value of $2,921 mores sensitive to the Year 1 Unit Sales or to the Year 2 Sales Growth Rate? Justify your answer
with numbers and explain why the NPV is more sensitive to the identified factor.: year 2 sales growth.
8. (Chapter 17) Fully list the six steps of the solution strategy used to forecast the Financial Statements insection
17.2.: 1. Analyze the historical financial statements to determine which income statement and balance sheet items are
close to being a constant percentage of sales and which items are not.2. Forecast sales as accurately as possible.
3. Apply the average historical percentage of sales to generate most of the income statement and balance sheet items.
4. Forecast other key assumptions to generate most of the rest and work out the implications for additional financing.
5. Make the balance sheet balance by calculating long-term debt as the plug item.
6. Raise (or lower) the portion of equity relative to the portion of debt by raising (or lowering) paid-in capital.
9. (Chapter 17) List six major individual (not total) income statement and balance sheet items that are not nearly constant
percentages of sales in the years
2010 through 2013 in Figure 17.4.: cash, accounts receivable, inventories, fixed assets, notes payable, long-term debt.
10. (Chapter 17) Do the sales growth forecasts in cells F5:H5 of Figure 17.5 seem
reasonable? Why or why not?: The forecasts is reasonable, it aligns closely with the company's past growth and current
market .
2/7
AND ANSWERS 2026 LATEST UPDATED | 100% GRADED CORRECT | 100%
GUARANTEED TO PASS | GET A+
1. (Chapter 10) Compute the current value added by the firm using five equiva-
lent methods.: 1. Adjusted Present Value 2. Free cash flow equity 3. Free cash flow to the firm 4. Divided discount model
5. Residual income
2. (Chapter 10) Value of the unleveled Firm: Location: B117, Date 0
Excel Function:
3. (Chapter 10) List the five equivalent methods for firm valuation.: 1. Discount the Free
Cash Flow to the Firm at the Unlevered Cost of Equity Capital to get the Value of the Unlevered Firm-1..
2. Discount the Tax Shield Benefit at the Cost of Riskfree Debt to get the Value of the Tax Shield.
3. Add the Value of the Unlevered Firm and the Value of the Tax Shield to get the Value of the Firm.
4. Subtract the Date 0 Capital from the Value of the Firm to get the Value Added by the Firm.
4. (Chapter 10 ) Fully list all the broad steps for calculating the Value Added by the Firm with the FreeCash Flow to Equity
method in Figure 10.4: 1. Discount the Free
Cash Flow to Equity at the Levered Cost of Equity Capital to get the Value of Equity.
2. Discount the Cash Flow to Debtholders at the Cost of Riskfree Debt to get the Value of the Debt.
3. Add the Value of Equity and the Value of Debt to get the Value of the Firm.
4. Subtract the Date 0 Capital from the Value of the Firm to get the Value Added by the Firm.
1/7
, 5. (Chapter 10) Fully list all the broad steps for calculating the Value Added by the Firm with the FreeCash Flow to
Firm method in Figure: Discount the Free Cash Flow to Firm at the Cost of Firm Capital (WACC) to get the Value of
Firm.
2. Subtract the Date 0 Capital from the Value of the Firm to get the Value Added by the Firm.
6. (Chapter 10) Fully list all the broad steps for calculating the Value Added by Firm with the Residual Income method
in...: 1. Calculate economic profit2. Determine the value
of economic profit (Present value)3. Add the book value of the firm4. Subtract initial investment
7. (Chapter 16) Based on the Data Table in Figure 16.5, is the project's Net
Present Value of $2,921 mores sensitive to the Year 1 Unit Sales or to the Year 2 Sales Growth Rate? Justify your answer
with numbers and explain why the NPV is more sensitive to the identified factor.: year 2 sales growth.
8. (Chapter 17) Fully list the six steps of the solution strategy used to forecast the Financial Statements insection
17.2.: 1. Analyze the historical financial statements to determine which income statement and balance sheet items are
close to being a constant percentage of sales and which items are not.2. Forecast sales as accurately as possible.
3. Apply the average historical percentage of sales to generate most of the income statement and balance sheet items.
4. Forecast other key assumptions to generate most of the rest and work out the implications for additional financing.
5. Make the balance sheet balance by calculating long-term debt as the plug item.
6. Raise (or lower) the portion of equity relative to the portion of debt by raising (or lowering) paid-in capital.
9. (Chapter 17) List six major individual (not total) income statement and balance sheet items that are not nearly constant
percentages of sales in the years
2010 through 2013 in Figure 17.4.: cash, accounts receivable, inventories, fixed assets, notes payable, long-term debt.
10. (Chapter 17) Do the sales growth forecasts in cells F5:H5 of Figure 17.5 seem
reasonable? Why or why not?: The forecasts is reasonable, it aligns closely with the company's past growth and current
market .
2/7
