Adventis Level II 2024 Questions With Correct Answers

debt service is defined as - right answer--the required principal amortization and interest a common proxy for cash flow is - right answer--EBITDA tangible net worth is defined as - right answer--book equity less goodwill and intangibles True or false: a good ratio to measure liquidity of a firm is debt/EBITDA - right answer--false cash conversion cycle is - right answer--DSO + DIO -DPO all of the following are examples of leverage covenants except for - right answer--current assets to current liabilities True or false: financial covenants can be thought of as guard rails to try and keep the borrower on the road - right answer--true True or false: time series analysis is beneficial and it analyzes financial performance over time - right answer--true if the quick ratio is significantly lower than the current ratio, the most likely explanation for this is - right answer--company carries significant levels of inventory the 6th C is - right answer--competition which of the following does NOT belong with enterprise value in a multiple? - right answer--net earnings which of the following DOES belong with enterprise value in a multiple? - right answer--all of these options belong with enterprise value (EBIT, rev, EBITDA) what is the primary difference between trading comparable and acquisition comparables? - right answer--trading comparables change as the share price changes in the stock market, whereas acquisition comparable are based on historical M&A transactions and remain static what is the formula for enterprise value? - right answer--equity value plus debt less cash which of the following pairs do NOT belong together - right answer--enterprise value and net earnings