Adventis FMC Level 2 Latest Update 2025-2026
Exam 115 Questions with 100% Verified Correct
Answers Guaranteed A+
1. E
2. D
3. V
4. E/V
5. D/V
6. Re
7. Rd
8. T - CORRECT ANSWER: 1. market value of equity
2. market value of debt
3. total enterprise value (E+D)
4. % of financing that is equity
5. % of financing that is debt
6. cost of equity
7. cost of debt
8. corporate tax rate
2 primary types of relative valuation - CORRECT ANSWER: 1. comparable company
analysis
2. acquisition comparables analysis
2 primary types of valuation - CORRECT ANSWER: 1. relative valuation
2. intrinsic valuation
, a company sold for $100M and the company being bought had $15M of debt and $2M
of cash, what happens and what is the transaction value and purchase price -
CORRECT ANSWER: - the $2M would be used by shareholders of the acquired
company to pay down existing $15M in debt to make $13M in debt now (15 - 2 = 13)
- the proceeds from the deal would then be used to pay down the remaining debt (EV =
CS + PS + Debt - Cash)
- Result is 100 - 13 = 87
- TV = $100M
- Purchase price = $87 (check to shareholders of acquired company)
acquisition comparables analysis (transaction comparables analysis) - CORRECT
ANSWER: represent comparable acquisitions that have taken place and have been
publicly announced
amount and types of debt are determined by... - CORRECT ANSWER: lenders with any
remaining capital necessary to finance the acquisition coming from the financial sponsor
as their initial equity investment
amount of debt varies due to - CORRECT ANSWER: 1. industry the company operates
in
2. predictability of cash flow
are multiples for acquisition comparables higher or lower than mulitples for comparable
companies - CORRECT ANSWER: higher because acquirers need to pay a premium to
the current share price to gain control of the company
assume a company has $5M of EBITDA and two public companies most similar to the
company trade at 6.0x and 7.0x EBITDA, what might you conclude - CORRECT
ANSWER: - Ex: 7.0 = x/5 ; 6.0 = x/5
- can conclude that EV for the company should be between 30-35 million
assume that a company trades at 7.0x EBITDA but the average of comparable
companies is 9.0x, what can we conclude - CORRECT ANSWER: the company is being
Exam 115 Questions with 100% Verified Correct
Answers Guaranteed A+
1. E
2. D
3. V
4. E/V
5. D/V
6. Re
7. Rd
8. T - CORRECT ANSWER: 1. market value of equity
2. market value of debt
3. total enterprise value (E+D)
4. % of financing that is equity
5. % of financing that is debt
6. cost of equity
7. cost of debt
8. corporate tax rate
2 primary types of relative valuation - CORRECT ANSWER: 1. comparable company
analysis
2. acquisition comparables analysis
2 primary types of valuation - CORRECT ANSWER: 1. relative valuation
2. intrinsic valuation
, a company sold for $100M and the company being bought had $15M of debt and $2M
of cash, what happens and what is the transaction value and purchase price -
CORRECT ANSWER: - the $2M would be used by shareholders of the acquired
company to pay down existing $15M in debt to make $13M in debt now (15 - 2 = 13)
- the proceeds from the deal would then be used to pay down the remaining debt (EV =
CS + PS + Debt - Cash)
- Result is 100 - 13 = 87
- TV = $100M
- Purchase price = $87 (check to shareholders of acquired company)
acquisition comparables analysis (transaction comparables analysis) - CORRECT
ANSWER: represent comparable acquisitions that have taken place and have been
publicly announced
amount and types of debt are determined by... - CORRECT ANSWER: lenders with any
remaining capital necessary to finance the acquisition coming from the financial sponsor
as their initial equity investment
amount of debt varies due to - CORRECT ANSWER: 1. industry the company operates
in
2. predictability of cash flow
are multiples for acquisition comparables higher or lower than mulitples for comparable
companies - CORRECT ANSWER: higher because acquirers need to pay a premium to
the current share price to gain control of the company
assume a company has $5M of EBITDA and two public companies most similar to the
company trade at 6.0x and 7.0x EBITDA, what might you conclude - CORRECT
ANSWER: - Ex: 7.0 = x/5 ; 6.0 = x/5
- can conclude that EV for the company should be between 30-35 million
assume that a company trades at 7.0x EBITDA but the average of comparable
companies is 9.0x, what can we conclude - CORRECT ANSWER: the company is being
