CFA Final Exam2023 with complete solutions

CFA Final Exam2023 with complete
solutions
Leverage Ratio - Answer- total debt/normalized EBITDA

Interest Coverage - Answer- normalized operating income/interest expense

Debt to Market Capital - Answer- total debt/(total debt+market cap)

Unlevered Beta - Answer- Beta/(1+(1-tax rate)*(debt/market rate)

Re-levering beta - Answer- unlevered beta*(1+(1-tax rate)*(debt/market cap)

PV Factor - Answer- 1/(1+WACC)^half year convention

Debt of post-acquisition company - Answer- last year debt+value of new company (after
prem)*% debt used in acquisition

Market Cap of post-acquisition company - Answer- last years market cap+ value of new
company (after prem)*% equity used in acquisition

Free Cash Flows - Answer- Operating income*(1-tax rate)

Terminal Value - Answer- (most recent year free cash flowsx(B401+terminal
growth)/(WACC-Terminal growth)*PV factor

Intrinsic Equity Value - Answer- Operating value - net debt

Premium - Answer- (total value-mkt cap)/mkt cap

Rev. Multiple - Answer- (net debt+market cap)/Sales

EBITDA Multiple - Answer- (Net debt+merket cap)/EBITDA

EBITDA % - Answer- EBITDA/Sales