Financial Modelling MCQ With Answers: Exam Solved –
Financial Modeling Solved Questions and
Answers
FINANCIAL MODELLING Q&A 1 TO 8
Question 1 of 32
What is a toggle, as used with Excel in a financial model?
(A) It’s a cell that replaces inputs with outputs to test sensitivity.
(B) It’s an easy way to change the entire scenario behind the model.
(c) It’s a formula that produces a yes or no conclusion based on given
assumptions. (D)It’s a quick way to move from different cell values in Excel.
Question 2 of 32
In any financial model, what will always be the fundamental question?
(A) how the existing market trends can be ignored.
(B) how actual values can be placed into a theoretical model.
(C) how to assess the risk of future cash flow projections.
(D)how a particular investment can diversify your portfolio.
Question 3 of 32
You are considering an investment in a start-up company that has a brilliant idea no one has
2/20
, Financial Modelling MCQ With Answers: Exam Solved –
thought of before. Where will you start?
(A) Decide if the investment will generate enough cash to make it worthwhile.
(B) Look at the sources and uses of cash by the company.
(C) Evaluate the amount of debt involved in making the investment.
(D) Examine the balance sheet and goodwill of the company.
Question 4 of 32
As you begin to create a corporate finance model, what are the most important components
you need to have answers to in order to deal with valuation, risk, and investments?
(A)The drivers of sales, profitability, and interest rates.
(B)The drivers of sales, costs, and profitability.
(C)The drivers of cost, rate of return, and future cash flows.
(D)The drivers of sales, available working capital, and cost.
Question 5 of 32
In using a top-down financial model, what assumptions must you make?
(A) What price are customers willing to pay, how will inflation affect sales price, and what is
your company’s required internal rate of return.
(B) What will be the market sales growth every year, how much your share of the market
will grow, and how much your order value will grow.
(C) What percentage of the market can you optimistically capture, how will your competitors react,
and how much of the market will you retain.
(D) What will be the sales market sales growth every year, how much your order value will
grow every year, and what your weighted cost of capital will be.
Question 6 of 32
How can Excel help you address the problem of interest rates significantly fluctuating over
time?
(A) You can import FRED data into Excel.
(B) You can calculate a projected future rate in Excel.
3/20
Financial Modeling Solved Questions and
Answers
FINANCIAL MODELLING Q&A 1 TO 8
Question 1 of 32
What is a toggle, as used with Excel in a financial model?
(A) It’s a cell that replaces inputs with outputs to test sensitivity.
(B) It’s an easy way to change the entire scenario behind the model.
(c) It’s a formula that produces a yes or no conclusion based on given
assumptions. (D)It’s a quick way to move from different cell values in Excel.
Question 2 of 32
In any financial model, what will always be the fundamental question?
(A) how the existing market trends can be ignored.
(B) how actual values can be placed into a theoretical model.
(C) how to assess the risk of future cash flow projections.
(D)how a particular investment can diversify your portfolio.
Question 3 of 32
You are considering an investment in a start-up company that has a brilliant idea no one has
2/20
, Financial Modelling MCQ With Answers: Exam Solved –
thought of before. Where will you start?
(A) Decide if the investment will generate enough cash to make it worthwhile.
(B) Look at the sources and uses of cash by the company.
(C) Evaluate the amount of debt involved in making the investment.
(D) Examine the balance sheet and goodwill of the company.
Question 4 of 32
As you begin to create a corporate finance model, what are the most important components
you need to have answers to in order to deal with valuation, risk, and investments?
(A)The drivers of sales, profitability, and interest rates.
(B)The drivers of sales, costs, and profitability.
(C)The drivers of cost, rate of return, and future cash flows.
(D)The drivers of sales, available working capital, and cost.
Question 5 of 32
In using a top-down financial model, what assumptions must you make?
(A) What price are customers willing to pay, how will inflation affect sales price, and what is
your company’s required internal rate of return.
(B) What will be the market sales growth every year, how much your share of the market
will grow, and how much your order value will grow.
(C) What percentage of the market can you optimistically capture, how will your competitors react,
and how much of the market will you retain.
(D) What will be the sales market sales growth every year, how much your order value will
grow every year, and what your weighted cost of capital will be.
Question 6 of 32
How can Excel help you address the problem of interest rates significantly fluctuating over
time?
(A) You can import FRED data into Excel.
(B) You can calculate a projected future rate in Excel.
3/20
