CFI EXAM STUDY QUESTIONS WITH 100% CORRECT
ANSWERS!!
1 of 75
Term
Which three ratios are used to mathematically produce the return on
equity ratio? Select ALL correct answers.
Give this one a try later!
Start with the total addressable market and forecast the revenue based on
market share and segments. ***(not sure)
, Potentially reveals information about market demand for certain types of
assets and industry trends ***
Total assets turnover, net profit margin, total assets to equity
Total assets to equity, Net profit margin, Total assets turnover (ROE = (Net
Income/Sales) x (Sales/Total Assets) x (Total Assets/Average Shareholder
Equity)
Don't know?
2 of 75
Definition
Variable cost with diseconomies of scale (upward curve)
Give this one a try later!
The keyboard shortcuts Ctrl + 1 (PC)
The graph below describes
or Command + 1 (MAC) performs
which of the following actions?
Which of the following does
not describe a strategic buyer in The net profit margin ratio can
M&A transactions mathematically be broken down as
Don't know?
3 of 75
,Term
What is the present value of a cash inflow of $2,000 five years from
now if the required rate of return is 6%?
Give this one a try later!
= 1/1*(1+Discount rate)^n = 0.92 (0.93
1494.52 (2000/(1.06^5) rounded)
3500 (end - beginning) +
Gross Profit Margin Ratio
depreciation
Don't know?
4 of 75
Term
The net profit margin ratio can mathematically be broken down as:
Give this one a try later!
Negotiate the contract with
Tax impact x Capital
suppliers to be able to delay the
structure impact x EBIT /
payments
Sales
These ratios measure how
efficiently a company is utilizing its the company might have
assets and invested too much PP&E in
year 3
, resources
Don't know?
5 of 75
Term
What is the total cash from operating activities based on the
information below? (620, 240, 210, 90, 160)
Give this one a try later!
These ratios measure how efficiently
= 1/1*(1+Discount rate)^n = 0.92 (0.93
a company is utilizing its assets and
rounded)
resources
Issuing more shares will 720; Net Income +
decrease ROE, Generating higher Depreciation - Increase in
net income will increase ROE. receivables - Increase in
(ROE = net income (annual) / Inventory + Increase in
Shareholders' Equity) *** payables
Don't know?
ANSWERS!!
1 of 75
Term
Which three ratios are used to mathematically produce the return on
equity ratio? Select ALL correct answers.
Give this one a try later!
Start with the total addressable market and forecast the revenue based on
market share and segments. ***(not sure)
, Potentially reveals information about market demand for certain types of
assets and industry trends ***
Total assets turnover, net profit margin, total assets to equity
Total assets to equity, Net profit margin, Total assets turnover (ROE = (Net
Income/Sales) x (Sales/Total Assets) x (Total Assets/Average Shareholder
Equity)
Don't know?
2 of 75
Definition
Variable cost with diseconomies of scale (upward curve)
Give this one a try later!
The keyboard shortcuts Ctrl + 1 (PC)
The graph below describes
or Command + 1 (MAC) performs
which of the following actions?
Which of the following does
not describe a strategic buyer in The net profit margin ratio can
M&A transactions mathematically be broken down as
Don't know?
3 of 75
,Term
What is the present value of a cash inflow of $2,000 five years from
now if the required rate of return is 6%?
Give this one a try later!
= 1/1*(1+Discount rate)^n = 0.92 (0.93
1494.52 (2000/(1.06^5) rounded)
3500 (end - beginning) +
Gross Profit Margin Ratio
depreciation
Don't know?
4 of 75
Term
The net profit margin ratio can mathematically be broken down as:
Give this one a try later!
Negotiate the contract with
Tax impact x Capital
suppliers to be able to delay the
structure impact x EBIT /
payments
Sales
These ratios measure how
efficiently a company is utilizing its the company might have
assets and invested too much PP&E in
year 3
, resources
Don't know?
5 of 75
Term
What is the total cash from operating activities based on the
information below? (620, 240, 210, 90, 160)
Give this one a try later!
These ratios measure how efficiently
= 1/1*(1+Discount rate)^n = 0.92 (0.93
a company is utilizing its assets and
rounded)
resources
Issuing more shares will 720; Net Income +
decrease ROE, Generating higher Depreciation - Increase in
net income will increase ROE. receivables - Increase in
(ROE = net income (annual) / Inventory + Increase in
Shareholders' Equity) *** payables
Don't know?
