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CFI CBCA FINAL EXAM NEWEST 2025/2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
Why do private lenders generally operate lower down the capital
stack compared to financial institutions? - ANSWER-Financial
institutions are readily accessible and are often the first place
companies go for loans, leaving only more risky borrowers for
private lenders.
Using our risk rating and profitability model, compare two
scenarios regarding a loan issuance. Compare the ratios of the
two scenarios below:
Scenario 1 Scenario 2 Debt Service Coverage Ratio1.89 5.19
Adjusted EBITDA/Interest8.85 9.09 Debt/Equity0.86 0.86 Total
Liabilities/Tangible Net Worth1.78 1.78 Current Ratio2.03 2.03
If the company's balance sheet is the same for both scenarios,
what could have caused the changes in the ratios for Scenario 2?
- ANSWER-Longer amortization period in the loans.
Which of the following are NOT one of the analysis framework
tools used to evaluate the qualitative elements (business, industry
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and management analysis) in our risk rating model? - ANSWER-
Sensitivity Analysis
Which of the following is one of the analysis framework tools used
to evaluate the qualitative elements (business, industry and
management analysis) in our risk rating model? - ANSWER-
Porters Five Forces
PESTEL Analysis
Business Analysis Scorecard
In our risk rating model example, we looked at a scenario that
improved Atlas' risk rating from "Moderate Risk" to "Low Risk". As
a result, the RAROC for each of its loan facilities increased
significantly.
Which of the following changes to the inputs in the RAROC
calculation, in response to the improved risk rating, did NOT
contribute to this increase in the RAROC? - ANSWER-A decrease
in capital requirement
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Choose the statement that best describes business writing. -
ANSWER-Business writing focuses on meeting a need and
delivering a conclusion for a problem.
Choose the statement that is most correct regarding writing for
different audiences. - ANSWER-Business writing aimed at a
director should be short and concise because they are very busy
and only have small amounts of time to process the information.
Compare the following two sentences.
As of the most recent safety meeting regarding equipment, there
have been a number of grievances that have been raised.
We have received complaints about equipment safety.
Identify which plain language techniques were used to re-write the
first sentence into the second sentence. - ANSWER-Active voice,
short words, unnecessary words, long sentences
Which of the following statements best describes why we direct
readers to the appendices, where we put supporting evidence and
raw data? - ANSWER-Decision-makers want to focus on the main
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message of the writing. The supporting evidence is available in
the appendices if they want to know more.
Which of these statements about using graphics is the LEAST
correct? - ANSWER-Graphics should always be used whenever
they can replace text.
What of the following is NOT one of the key items to consider for
plain language writing? - ANSWER-Writing delivery
What is the purpose of using the fog index? - ANSWER-To
evaluate how hard it is to read your writing.
You are a financial analyst at Company A. Your company is
looking to acquire Company B. You have been tasked to evaluate
their financial performance and you notice the following:
Sales have declined for the last five years by roughly 1.5% each
year
Operating expenses have also been increasing by 2.1% each
year in the same time period
CFI CBCA FINAL EXAM NEWEST 2025/2026 ACTUAL EXAM WITH
COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
Why do private lenders generally operate lower down the capital
stack compared to financial institutions? - ANSWER-Financial
institutions are readily accessible and are often the first place
companies go for loans, leaving only more risky borrowers for
private lenders.
Using our risk rating and profitability model, compare two
scenarios regarding a loan issuance. Compare the ratios of the
two scenarios below:
Scenario 1 Scenario 2 Debt Service Coverage Ratio1.89 5.19
Adjusted EBITDA/Interest8.85 9.09 Debt/Equity0.86 0.86 Total
Liabilities/Tangible Net Worth1.78 1.78 Current Ratio2.03 2.03
If the company's balance sheet is the same for both scenarios,
what could have caused the changes in the ratios for Scenario 2?
- ANSWER-Longer amortization period in the loans.
Which of the following are NOT one of the analysis framework
tools used to evaluate the qualitative elements (business, industry
,2|Page
and management analysis) in our risk rating model? - ANSWER-
Sensitivity Analysis
Which of the following is one of the analysis framework tools used
to evaluate the qualitative elements (business, industry and
management analysis) in our risk rating model? - ANSWER-
Porters Five Forces
PESTEL Analysis
Business Analysis Scorecard
In our risk rating model example, we looked at a scenario that
improved Atlas' risk rating from "Moderate Risk" to "Low Risk". As
a result, the RAROC for each of its loan facilities increased
significantly.
Which of the following changes to the inputs in the RAROC
calculation, in response to the improved risk rating, did NOT
contribute to this increase in the RAROC? - ANSWER-A decrease
in capital requirement
,3|Page
Choose the statement that best describes business writing. -
ANSWER-Business writing focuses on meeting a need and
delivering a conclusion for a problem.
Choose the statement that is most correct regarding writing for
different audiences. - ANSWER-Business writing aimed at a
director should be short and concise because they are very busy
and only have small amounts of time to process the information.
Compare the following two sentences.
As of the most recent safety meeting regarding equipment, there
have been a number of grievances that have been raised.
We have received complaints about equipment safety.
Identify which plain language techniques were used to re-write the
first sentence into the second sentence. - ANSWER-Active voice,
short words, unnecessary words, long sentences
Which of the following statements best describes why we direct
readers to the appendices, where we put supporting evidence and
raw data? - ANSWER-Decision-makers want to focus on the main
, 4|Page
message of the writing. The supporting evidence is available in
the appendices if they want to know more.
Which of these statements about using graphics is the LEAST
correct? - ANSWER-Graphics should always be used whenever
they can replace text.
What of the following is NOT one of the key items to consider for
plain language writing? - ANSWER-Writing delivery
What is the purpose of using the fog index? - ANSWER-To
evaluate how hard it is to read your writing.
You are a financial analyst at Company A. Your company is
looking to acquire Company B. You have been tasked to evaluate
their financial performance and you notice the following:
Sales have declined for the last five years by roughly 1.5% each
year
Operating expenses have also been increasing by 2.1% each
year in the same time period
