EXAM
Exam Solution
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FMVA 2026 A+ GRADE ASSURED COMPLETE SOLUTION
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S AND VERIFIED ANSWERS (F29B4)
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QUESTION 1 ga
Using the financial statements attached, what is the company's return on equity in year
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5?
ANSWER
27.15%
QUESTION 2 ga
When analyzing the income statement, which line item do you typically use as the deno
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minator in the ratio?
ga ga ga
ANSWER
Sales
QUESTION 3 ga
What is typically NOT included in a checklist used to identify appropriate peer group co
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mpanies?
ANSWER
Same type of management team
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QUESTION 4 ga
What is the correct formula for calculating NOPAT?
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ANSWER
EBIT x (1 - Tax Rate)
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,QUESTION 5 ga
When conducting financial analysis, what is the recommended best practice for minimu
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m number of years of financial statements?
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ANSWER
5 years
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QUESTION 6 ga
What are the three ROE levers of the DuPont pyramid?
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ANSWER
Net Profit Margin x Total Asset Turnover x Financial Leverage
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QUESTION 7 ga
Which of the following is NOT a characteristic of horizontal analysis?
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ANSWER
It is most effective when comparing one period with each other.
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QUESTION 8 ga
Which current asset or liability is omitted from this ratio?
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ANSWER
Inventory
QUESTION 9 ga
Which of the following retailers is most likely to have the lowest inventory days?
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ANSWER
A grocery store / supermarket
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QUESTION 10 ga
The proper structure of a 3-
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statement model should contain which of the following modules?
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ANSWER
,Inputs, Calculations, Outputs
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QUESTION 11 ga
Which of the following is a best practice for financial model inputs?
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ANSWER
Data should only be entered once
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QUESTION 12 ga
What is the formula for the Capital Asset Turnover Ratio?
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ANSWER
Sales/Property, Plant & Equipment ga ga ga
QUESTION 13 ga
According to the course, a 3- ga ga ga ga ga
statement financial model can be used for which of the following purposes? Select ALL t
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hat apply.
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ANSWER
Strategic planning, Corporate transactions, and Investment decisions
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QUESTION 14 ga
Complex financial models are all of the following EXCEPT:
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ANSWER
They are easy to audit
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QUESTION 15 ga
Which of the following items are considered "operating activities" on the cash flow state
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ment? Select ALL correct answers.
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ANSWER
Changes in operating assets and liabilities, Net income, and Depreciation
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QUESTION 16 ga
, According to the course, which is the best method for calculating interest expense?
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ANSWER
Interest Rate x Average Debt Balance
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QUESTION 17 ga
Forecast the Year 1 gross profit on the previous year's number and the assumptions.
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ANSWER
47,742
QUESTION 18 ga
Calculate EBITDA and EBIT, respectively, given the information in the Excel file.
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ANSWER
3,631; 1,356 ga
QUESTION 19 ga
Calculate the number of accounts receivable days, given the information in the Excel file.
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Assume 365 days in the year.
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ANSWER
45.4 days ga
QUESTION 20 ga
Forecast the company's inventory, given the information in the Excel file. Assume 365 da
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ys in the year.
ga ga ga
ANSWER
237,904
QUESTION 21 ga
What is the cash impact from working capital in Year 2?
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ANSWER
125,766
Exam Solution
ga
FMVA 2026 A+ GRADE ASSURED COMPLETE SOLUTION
ga ga ga ga ga ga
S AND VERIFIED ANSWERS (F29B4)
ga ga ga ga
QUESTION 1 ga
Using the financial statements attached, what is the company's return on equity in year
ga ga ga ga ga ga ga ga ga ga ga ga ga ga
5?
ANSWER
27.15%
QUESTION 2 ga
When analyzing the income statement, which line item do you typically use as the deno
ga ga ga ga ga ga ga ga ga ga ga ga ga ga
minator in the ratio?
ga ga ga
ANSWER
Sales
QUESTION 3 ga
What is typically NOT included in a checklist used to identify appropriate peer group co
ga ga ga ga ga ga ga ga ga ga ga ga ga ga
mpanies?
ANSWER
Same type of management team
ga ga ga ga
QUESTION 4 ga
What is the correct formula for calculating NOPAT?
ga ga ga ga ga ga ga
ANSWER
EBIT x (1 - Tax Rate)
ga ga ga ga ga
,QUESTION 5 ga
When conducting financial analysis, what is the recommended best practice for minimu
ga ga ga ga ga ga ga ga ga ga ga
m number of years of financial statements?
ga ga ga ga ga ga
ANSWER
5 years
ga
QUESTION 6 ga
What are the three ROE levers of the DuPont pyramid?
ga ga ga ga ga ga ga ga ga
ANSWER
Net Profit Margin x Total Asset Turnover x Financial Leverage
ga ga ga ga ga ga ga ga ga
QUESTION 7 ga
Which of the following is NOT a characteristic of horizontal analysis?
ga ga ga ga ga ga ga ga ga ga
ANSWER
It is most effective when comparing one period with each other.
ga ga ga ga ga ga ga ga ga ga
QUESTION 8 ga
Which current asset or liability is omitted from this ratio?
ga ga ga ga ga ga ga ga ga
ANSWER
Inventory
QUESTION 9 ga
Which of the following retailers is most likely to have the lowest inventory days?
ga ga ga ga ga ga ga ga ga ga ga ga ga
ANSWER
A grocery store / supermarket
ga ga ga ga
QUESTION 10 ga
The proper structure of a 3-
ga ga ga ga ga
statement model should contain which of the following modules?
ga ga ga ga ga ga ga ga
ANSWER
,Inputs, Calculations, Outputs
ga ga
QUESTION 11 ga
Which of the following is a best practice for financial model inputs?
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ANSWER
Data should only be entered once
ga ga ga ga ga
QUESTION 12 ga
What is the formula for the Capital Asset Turnover Ratio?
ga ga ga ga ga ga ga ga ga
ANSWER
Sales/Property, Plant & Equipment ga ga ga
QUESTION 13 ga
According to the course, a 3- ga ga ga ga ga
statement financial model can be used for which of the following purposes? Select ALL t
ga ga ga ga ga ga ga ga ga ga ga ga ga ga
hat apply.
ga
ANSWER
Strategic planning, Corporate transactions, and Investment decisions
ga ga ga ga ga ga
QUESTION 14 ga
Complex financial models are all of the following EXCEPT:
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ANSWER
They are easy to audit
ga ga ga ga
QUESTION 15 ga
Which of the following items are considered "operating activities" on the cash flow state
ga ga ga ga ga ga ga ga ga ga ga ga ga
ment? Select ALL correct answers.
ga ga ga ga
ANSWER
Changes in operating assets and liabilities, Net income, and Depreciation
ga ga ga ga ga ga ga ga ga
QUESTION 16 ga
, According to the course, which is the best method for calculating interest expense?
ga ga ga ga ga ga ga ga ga ga ga ga
ANSWER
Interest Rate x Average Debt Balance
ga ga ga ga ga
QUESTION 17 ga
Forecast the Year 1 gross profit on the previous year's number and the assumptions.
ga ga ga ga ga ga ga ga ga ga ga ga ga
ANSWER
47,742
QUESTION 18 ga
Calculate EBITDA and EBIT, respectively, given the information in the Excel file.
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ANSWER
3,631; 1,356 ga
QUESTION 19 ga
Calculate the number of accounts receivable days, given the information in the Excel file.
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Assume 365 days in the year.
ga ga ga ga ga ga
ANSWER
45.4 days ga
QUESTION 20 ga
Forecast the company's inventory, given the information in the Excel file. Assume 365 da
ga ga ga ga ga ga ga ga ga ga ga ga ga
ys in the year.
ga ga ga
ANSWER
237,904
QUESTION 21 ga
What is the cash impact from working capital in Year 2?
ga ga ga ga ga ga ga ga ga ga
ANSWER
125,766
