FMVA FINAL EXAM 2025/2026 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |CURRENTLY TESTING
QUESTIONS AND SOLUTIONS|ALREADY
GRADED A+|NEWEST|BRAND NEW VERSION
!!|GUARANTEED PASS
What are financial modeling guidelines and why are they relevant?
A set of principles and guidance for financial modeling which promote consistency across
models used by all stakeholders.
What is the Deferred Tax amount on the cash flow statement in 2025F?
$800
What is the Cash from Accounts Receivable in 2023F?
$850
What is the Equity Issue / (Buyback) in 2023F?
$18,000
What is the Earnings Before Tax (EBT) in 2025F?
$3,110
What is the Cash from Accounts Payable in 2024F?
$1,050
What is the Line of Credit Issue / (Repay) in 2023F?
($1,000)
What are the Total Liabilities & Equity in 2023F?
$87,450
What is the Net Income in 2024F?
1|Page
,($1,380)
What is the depreciation on the cash flow statement in 2024F?
$4,150
What is the capital expenditure amount on the cash flow statement in 2025F?
($6,190)
What is the Term Loan Issue / (Repay) in 2024F?
($3,000)
What are the dividends paid on the cash flow statement in 2025F?
($300)
Which of the following is not typically a task as part of the financial modeling process?
Smoothing data for management
What are some of the drawbacks to including circular calculations in a financial model? Select
ALL that apply.
The Excel model may 'crash' due to a circularity problem AND It makes reviewing models more
difficult AND While a circularity switch should be installed, many users may not know how to
use this switch
Modeling a revolving line of credit is a crucial skill for an analyst. Additionally, it helps the
analyst naturally balance a balance sheet. Which of the below are features of building a
revolving line of credit into a financial model? Select ALL that apply.
It can be borrowed, paid back and re-borrowed as needed AND Flexibility which can be used
when necessary AND It's a 'lender of last resort'
Corkscrew schedules are primarily used to support calculations for which financial statement?
Balance Sheet
According to our materials, which selection below is likely the most important part of a financial
model?
Dashboard of key metrics and charts
What is a required Excel setting that allows for circular calculations?
Enable iterative calculations
2|Page
, Which of the following are financial models used? Select ALL that apply.
Decision making AND Communication
Financial modeling professionals typically break their work down into modular steps for ease
and transparency, before linking everything back to the three core financial statements. Which
of the following is a true statement? Select ALL that apply.
We can set up multiple checks to see if there are errors in our financial model. AND The Balance
Sheet acts as a natural error detection system.
Why is the last twelve months (LTM) EBITDA used in valuation metrics like EV/EBITDA?
To use numbers that are certain and audited.
Which items below should be included in a calculation of a company's total debt?
Long-term debt, current borrowings, line of credit, and loans.
Which of the following items would all be considered business characteristics?
Customers, type of distribution, geography, and products.
Whose view is represented when you perform DCF Analysis, Comparable Trading Analysis, and
Precedent Transaction Analysis?
Your view, the market's view, and the acquirer's view.
Which statement below most accurately reflects a correct procedure for calculating the
enterprise value for a target company using peer group analysis?
Select peer group, calculate average EV/EBITDA multiple, and multiply average EV/EBITDA
multiple by target EBITDA to derive enterprise value.
What is the advantage of using EV/EBITDA multiples for relative valuation?
They are a simple and widely used metric that avoids the misleading precision of other
valuation methods.
Which of the following is a disadvantage of using relative valuation?
It can be overly simplistic and does not account for unique differences between companies.
Why do we need the terms for non-controlling interest and investments in affiliates in the
enterprise value equation when using EV/EBITDA multiples for comparable valuation analysis?
These terms allow us to remove the mismatch between the numerator and denominator in
EV/EBITDA multiples.
3|Page
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |CURRENTLY TESTING
QUESTIONS AND SOLUTIONS|ALREADY
GRADED A+|NEWEST|BRAND NEW VERSION
!!|GUARANTEED PASS
What are financial modeling guidelines and why are they relevant?
A set of principles and guidance for financial modeling which promote consistency across
models used by all stakeholders.
What is the Deferred Tax amount on the cash flow statement in 2025F?
$800
What is the Cash from Accounts Receivable in 2023F?
$850
What is the Equity Issue / (Buyback) in 2023F?
$18,000
What is the Earnings Before Tax (EBT) in 2025F?
$3,110
What is the Cash from Accounts Payable in 2024F?
$1,050
What is the Line of Credit Issue / (Repay) in 2023F?
($1,000)
What are the Total Liabilities & Equity in 2023F?
$87,450
What is the Net Income in 2024F?
1|Page
,($1,380)
What is the depreciation on the cash flow statement in 2024F?
$4,150
What is the capital expenditure amount on the cash flow statement in 2025F?
($6,190)
What is the Term Loan Issue / (Repay) in 2024F?
($3,000)
What are the dividends paid on the cash flow statement in 2025F?
($300)
Which of the following is not typically a task as part of the financial modeling process?
Smoothing data for management
What are some of the drawbacks to including circular calculations in a financial model? Select
ALL that apply.
The Excel model may 'crash' due to a circularity problem AND It makes reviewing models more
difficult AND While a circularity switch should be installed, many users may not know how to
use this switch
Modeling a revolving line of credit is a crucial skill for an analyst. Additionally, it helps the
analyst naturally balance a balance sheet. Which of the below are features of building a
revolving line of credit into a financial model? Select ALL that apply.
It can be borrowed, paid back and re-borrowed as needed AND Flexibility which can be used
when necessary AND It's a 'lender of last resort'
Corkscrew schedules are primarily used to support calculations for which financial statement?
Balance Sheet
According to our materials, which selection below is likely the most important part of a financial
model?
Dashboard of key metrics and charts
What is a required Excel setting that allows for circular calculations?
Enable iterative calculations
2|Page
, Which of the following are financial models used? Select ALL that apply.
Decision making AND Communication
Financial modeling professionals typically break their work down into modular steps for ease
and transparency, before linking everything back to the three core financial statements. Which
of the following is a true statement? Select ALL that apply.
We can set up multiple checks to see if there are errors in our financial model. AND The Balance
Sheet acts as a natural error detection system.
Why is the last twelve months (LTM) EBITDA used in valuation metrics like EV/EBITDA?
To use numbers that are certain and audited.
Which items below should be included in a calculation of a company's total debt?
Long-term debt, current borrowings, line of credit, and loans.
Which of the following items would all be considered business characteristics?
Customers, type of distribution, geography, and products.
Whose view is represented when you perform DCF Analysis, Comparable Trading Analysis, and
Precedent Transaction Analysis?
Your view, the market's view, and the acquirer's view.
Which statement below most accurately reflects a correct procedure for calculating the
enterprise value for a target company using peer group analysis?
Select peer group, calculate average EV/EBITDA multiple, and multiply average EV/EBITDA
multiple by target EBITDA to derive enterprise value.
What is the advantage of using EV/EBITDA multiples for relative valuation?
They are a simple and widely used metric that avoids the misleading precision of other
valuation methods.
Which of the following is a disadvantage of using relative valuation?
It can be overly simplistic and does not account for unique differences between companies.
Why do we need the terms for non-controlling interest and investments in affiliates in the
enterprise value equation when using EV/EBITDA multiples for comparable valuation analysis?
These terms allow us to remove the mismatch between the numerator and denominator in
EV/EBITDA multiples.
3|Page
