CFI Exam Study Questions with Correct
Answers| Latest Update
Based on the information in the table, what is the share price when the price to earnings
(P/E) multiple of a comparable company is 17x? - ✔✔multiple x Net Income, then
take that number and divide it by shares outstanding to get the share price (187)
Based on the information in the table, what is the share price when the enterprise value
to sales (EV/Sales) multiple of a comparable company is 2.4? - ✔✔multiple x sales =
EV, EV = shares*price - cash + debt. For this EV + cash - debt then divide by shares
outstanding (100) = (62.6)
Based on the following information form ABC Company's financial analysis, which one of
the following statements is true? - ✔✔the company might have invested too much
PP&E in year 3
The operating debt balance of company B is 18,230 and the repayment is scheduled for
2,150 per month at an annual interest rate of 4.5%. The closing balance of debt at the
end of the month is ___ and the interest payment is ___. Use the average debt balance
to calculate the interest payment. - ✔✔16,080; 64 (take opening debt and subtract
repayment) then take average between opening debt balance and closing month debt
balance and divide by (0.045/12) -interest rate for the month
Which three ratios are used to mathematically produce the return on equity ratio?
Select all correct answers - ✔✔Total assets turnover, net profit margin, total assets to
equity
Suppose you want to make a gauge chart on website traffic. This gauge chart was based
on the following data: 0, 0.25, 0.3, 0.2, 0.75, 30%, 5. What value should be outputted as
in cell C12? - ✔✔72****
, Based on the information in the table, what is the share price when the price to book
(P/B) multiple of a comparable company is 2.5? - ✔✔Multiple x BV of equity, then
take that number and divide it by shares outstanding
Which of the following is not part of the porters 5 forces? - ✔✔Economic forecasting
The consistency principle states that: - ✔✔Information should be prepared using the
same accounting methods for similar events and transactions over time
Which of the following factors does not correctly describe a precedent transaction
analysis? - ✔✔Potentially reveals information about market demand for certain types
of assets and industry trends ***
What is a reason for corporations to use debt in capital financing? - ✔✔To lower the
cost of capital
What excel functions will you use to create a drop-down menu shown in the image
below? - ✔✔Data validation
Which ratio would you use to determine how much profit a company makes after
paying off its cost of goods sold? - ✔✔Gross Profit Margin Ratio
What actions could a company take to reduce its working capital funding gap? -
✔✔Negotiate the contract with suppliers to be able to delay the payments
What could be the yield to maturity for a 3 year bond with a 8% annual coupon if the
bond is trading at discount? - ✔✔9% (discount - YTM > Coupon)
Answers| Latest Update
Based on the information in the table, what is the share price when the price to earnings
(P/E) multiple of a comparable company is 17x? - ✔✔multiple x Net Income, then
take that number and divide it by shares outstanding to get the share price (187)
Based on the information in the table, what is the share price when the enterprise value
to sales (EV/Sales) multiple of a comparable company is 2.4? - ✔✔multiple x sales =
EV, EV = shares*price - cash + debt. For this EV + cash - debt then divide by shares
outstanding (100) = (62.6)
Based on the following information form ABC Company's financial analysis, which one of
the following statements is true? - ✔✔the company might have invested too much
PP&E in year 3
The operating debt balance of company B is 18,230 and the repayment is scheduled for
2,150 per month at an annual interest rate of 4.5%. The closing balance of debt at the
end of the month is ___ and the interest payment is ___. Use the average debt balance
to calculate the interest payment. - ✔✔16,080; 64 (take opening debt and subtract
repayment) then take average between opening debt balance and closing month debt
balance and divide by (0.045/12) -interest rate for the month
Which three ratios are used to mathematically produce the return on equity ratio?
Select all correct answers - ✔✔Total assets turnover, net profit margin, total assets to
equity
Suppose you want to make a gauge chart on website traffic. This gauge chart was based
on the following data: 0, 0.25, 0.3, 0.2, 0.75, 30%, 5. What value should be outputted as
in cell C12? - ✔✔72****
, Based on the information in the table, what is the share price when the price to book
(P/B) multiple of a comparable company is 2.5? - ✔✔Multiple x BV of equity, then
take that number and divide it by shares outstanding
Which of the following is not part of the porters 5 forces? - ✔✔Economic forecasting
The consistency principle states that: - ✔✔Information should be prepared using the
same accounting methods for similar events and transactions over time
Which of the following factors does not correctly describe a precedent transaction
analysis? - ✔✔Potentially reveals information about market demand for certain types
of assets and industry trends ***
What is a reason for corporations to use debt in capital financing? - ✔✔To lower the
cost of capital
What excel functions will you use to create a drop-down menu shown in the image
below? - ✔✔Data validation
Which ratio would you use to determine how much profit a company makes after
paying off its cost of goods sold? - ✔✔Gross Profit Margin Ratio
What actions could a company take to reduce its working capital funding gap? -
✔✔Negotiate the contract with suppliers to be able to delay the payments
What could be the yield to maturity for a 3 year bond with a 8% annual coupon if the
bond is trading at discount? - ✔✔9% (discount - YTM > Coupon)
