FIN 305 WEEK 7 FINAL PART A
CERTIFICATION SCRIPT 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◍ return ratios.
Answer: ROA, ROE, ROCE
◍ extraordinary items definition.
Answer: events or transactions both unusual and infrequent
◍ unearned income.
Answer: recieved but not yet earned
◍ three main liquidity ratios.
Answer: cash, quick, current
◍ ivnestment securites examples.
Answer: fed funds sold, reverse repurchase agreements, treasury and agency
securities, muni's, mbs
◍ CFFA.
Answer: CFD + CFE
◍ CFD <->.
Answer: Rd<->MVD
◍ Customer Build: Churn (leave).
Answer: (churn %)(Beg Cust)
◍ retail cd's.
Answer: less than 250k in them, early withdrawl penalities, pay higher rate
◍ loans remain on the ___ but losses flow through the ___.
Answer: balance sheet; income statement
, ◍ Income Statement: Costs of Sales (COGS).
Answer: (beg cust)(COGS/user)
◍ NI =.
Answer: div + Change in R/E
◍ Dividends.
Answer: NI - Change R/E
◍ Operating Cash Flows (OCF).
Answer: EBIT - Tax + Depr
◍ Balance Sheet: Inventory.
Answer: (days inv/365)*COGS
◍ total oeprating income equals.
Answer: interest income + noninterest icnome
◍ equity capital.
Answer: common and preferred stocksurplus & additional paid in
capitalretained dearnings
◍ Income Statement: EBT.
Answer: OPEX - INTX
◍ Customer Build: gross additions (new).
Answer: total customer mktg expense / customer aq expense
◍ FCF <->.
Answer: Rw<->EV
◍ EBITDA.
Answer: NI + Int exp + tax + depr & amm
◍ Implied term rev mult.
Answer: M@t = EVt / TTM rev t
◍ Balance Sheet: Accounts receivable.
Answer: (days AR/365)*(rev--> from i/s)
CERTIFICATION SCRIPT 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◍ return ratios.
Answer: ROA, ROE, ROCE
◍ extraordinary items definition.
Answer: events or transactions both unusual and infrequent
◍ unearned income.
Answer: recieved but not yet earned
◍ three main liquidity ratios.
Answer: cash, quick, current
◍ ivnestment securites examples.
Answer: fed funds sold, reverse repurchase agreements, treasury and agency
securities, muni's, mbs
◍ CFFA.
Answer: CFD + CFE
◍ CFD <->.
Answer: Rd<->MVD
◍ Customer Build: Churn (leave).
Answer: (churn %)(Beg Cust)
◍ retail cd's.
Answer: less than 250k in them, early withdrawl penalities, pay higher rate
◍ loans remain on the ___ but losses flow through the ___.
Answer: balance sheet; income statement
, ◍ Income Statement: Costs of Sales (COGS).
Answer: (beg cust)(COGS/user)
◍ NI =.
Answer: div + Change in R/E
◍ Dividends.
Answer: NI - Change R/E
◍ Operating Cash Flows (OCF).
Answer: EBIT - Tax + Depr
◍ Balance Sheet: Inventory.
Answer: (days inv/365)*COGS
◍ total oeprating income equals.
Answer: interest income + noninterest icnome
◍ equity capital.
Answer: common and preferred stocksurplus & additional paid in
capitalretained dearnings
◍ Income Statement: EBT.
Answer: OPEX - INTX
◍ Customer Build: gross additions (new).
Answer: total customer mktg expense / customer aq expense
◍ FCF <->.
Answer: Rw<->EV
◍ EBITDA.
Answer: NI + Int exp + tax + depr & amm
◍ Implied term rev mult.
Answer: M@t = EVt / TTM rev t
◍ Balance Sheet: Accounts receivable.
Answer: (days AR/365)*(rev--> from i/s)
