Adventis FMC Level 2 Exam 2025/2026 Actual Complete Real
Exam Questions & Correct Answers | 100% Verified solutions
| Already Graded A+ / Assured Success / 2025 Latest Exam
Version!!
what is the WACC - ANSWER-minimum return that a company
must earn on an
existing asset base to satisfy all capital
providers
WACC represents... - ANSWER-the blended cost to debt
holders and equity
holders based on the cost of debt and
cost of equity
WACC formula - ANSWER-WACC = (%equity X cost of equity) +
(%debt X cost
of debt) X
(1-T)
1. E
2. D
3. V
,4. E/V
5. D/V
6. Re
7. Rd
8. T - 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
what is value - ANSWER-what people are willing to pay for
(what the buyer
pays)
who said, "Value is what people are willing to pay for" -
ANSWER-John Naisbitt
2 primary types of valuation - ANSWER-1.
relative valuation
2. intrinsic
valuation
, relative valuation refers to what - ANSWER-methods that
compare the price of
a company to the market value of
similar assets
what does a leveraged buyout analysis tell you - ANSWER-how
much a private
equity firm could afford to pay for a
business
private equity firms target a higher or lower return? -
ANSWER-higher which
means they use higher
leverage
for publicly traded companies, the purchase price assumes
what? - ANSWER-a
premium to the stock price to incent a change
in ownership
premium typically ranges between... - ANSWER-20-40%
transaction value determined by... - ANSWER-adding net debt
to the purchase
price
Exam Questions & Correct Answers | 100% Verified solutions
| Already Graded A+ / Assured Success / 2025 Latest Exam
Version!!
what is the WACC - ANSWER-minimum return that a company
must earn on an
existing asset base to satisfy all capital
providers
WACC represents... - ANSWER-the blended cost to debt
holders and equity
holders based on the cost of debt and
cost of equity
WACC formula - ANSWER-WACC = (%equity X cost of equity) +
(%debt X cost
of debt) X
(1-T)
1. E
2. D
3. V
,4. E/V
5. D/V
6. Re
7. Rd
8. T - 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
what is value - ANSWER-what people are willing to pay for
(what the buyer
pays)
who said, "Value is what people are willing to pay for" -
ANSWER-John Naisbitt
2 primary types of valuation - ANSWER-1.
relative valuation
2. intrinsic
valuation
, relative valuation refers to what - ANSWER-methods that
compare the price of
a company to the market value of
similar assets
what does a leveraged buyout analysis tell you - ANSWER-how
much a private
equity firm could afford to pay for a
business
private equity firms target a higher or lower return? -
ANSWER-higher which
means they use higher
leverage
for publicly traded companies, the purchase price assumes
what? - ANSWER-a
premium to the stock price to incent a change
in ownership
premium typically ranges between... - ANSWER-20-40%
transaction value determined by... - ANSWER-adding net debt
to the purchase
price
