Adventis Level II with all Correct & 100% Verified
Answers |Guaranteed to Pass |Already Graded A+
debt service is defined as ✔Correct Answer-the required principal amortization and interest
a common proxy for cash flow is ✔Correct Answer-EBITDA
tangible net worth is defined as ✔Correct Answer-book equity less goodwill and intangibles
True or false: a good ratio to measure liquidity of a firm is debt/EBITDA ✔Correct Answer-false
cash conversion cycle is ✔Correct Answer-DSO + DIO -DPO
all of the following are examples of leverage covenants except for ✔Correct Answer-current assets
to current liabilities
True or false: financial covenants can be thought of as guard rails to try and keep the borrower on
the road ✔Correct Answer-true
True or false: time series analysis is beneficial and it analyzes financial performance over time
✔Correct Answer-true
if the quick ratio is significantly lower than the current ratio, the most likely explanation for this is
✔Correct Answer-company carries significant levels of inventory
the 6th C is ✔Correct Answer-competition
which of the following does NOT belong with enterprise value in a multiple? ✔Correct Answer-net
earnings
which of the following DOES belong with enterprise value in a multiple? ✔Correct Answer-all of
these options belong with enterprise value (EBIT, rev, EBITDA)
what is the primary difference between trading comparable and acquisition comparables?
✔Correct Answer-trading comparables change as the share price changes in the stock market,
whereas acquisition comparable are based on historical M&A transactions and remain static
what is the formula for enterprise value? ✔Correct Answer-equity value plus debt less cash
which of the following pairs do NOT belong together ✔Correct Answer-enterprise value and net
earnings
Companies A and B both have revenue of $1,000 and EV/revenue multiples of 1.5x. Company A has
an EV/EBITDA of 6.0x and Company B has an EV/EBITDA of 8.0x. What is Company A's EBITDA?
✔Correct Answer-$250
Companies A and B both have revenue of $1,250 and EV/revenue multiples of 1.5x. Company A has
an EV/EBITDA of 8.0x and Company B has an EBITDA margin of 25%. What is company B's EBITDA
multiple? ✔Correct Answer-6.0x
Answers |Guaranteed to Pass |Already Graded A+
debt service is defined as ✔Correct Answer-the required principal amortization and interest
a common proxy for cash flow is ✔Correct Answer-EBITDA
tangible net worth is defined as ✔Correct Answer-book equity less goodwill and intangibles
True or false: a good ratio to measure liquidity of a firm is debt/EBITDA ✔Correct Answer-false
cash conversion cycle is ✔Correct Answer-DSO + DIO -DPO
all of the following are examples of leverage covenants except for ✔Correct Answer-current assets
to current liabilities
True or false: financial covenants can be thought of as guard rails to try and keep the borrower on
the road ✔Correct Answer-true
True or false: time series analysis is beneficial and it analyzes financial performance over time
✔Correct Answer-true
if the quick ratio is significantly lower than the current ratio, the most likely explanation for this is
✔Correct Answer-company carries significant levels of inventory
the 6th C is ✔Correct Answer-competition
which of the following does NOT belong with enterprise value in a multiple? ✔Correct Answer-net
earnings
which of the following DOES belong with enterprise value in a multiple? ✔Correct Answer-all of
these options belong with enterprise value (EBIT, rev, EBITDA)
what is the primary difference between trading comparable and acquisition comparables?
✔Correct Answer-trading comparables change as the share price changes in the stock market,
whereas acquisition comparable are based on historical M&A transactions and remain static
what is the formula for enterprise value? ✔Correct Answer-equity value plus debt less cash
which of the following pairs do NOT belong together ✔Correct Answer-enterprise value and net
earnings
Companies A and B both have revenue of $1,000 and EV/revenue multiples of 1.5x. Company A has
an EV/EBITDA of 6.0x and Company B has an EV/EBITDA of 8.0x. What is Company A's EBITDA?
✔Correct Answer-$250
Companies A and B both have revenue of $1,250 and EV/revenue multiples of 1.5x. Company A has
an EV/EBITDA of 8.0x and Company B has an EBITDA margin of 25%. What is company B's EBITDA
multiple? ✔Correct Answer-6.0x
