22/10/2024, 13:41 Exams | CFI
Exams
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Below is a review of your exam answers.
Questions Group
# 1
Question: Which of the following best describes a best efforts underwriting
commitment?
Max Points: 6
Earned Points: 0
Answer: Incorrect
# 2
Question: Free Cash Flow 100
Growth rate 2%
Tax Rate 1%
Cost of Capital 5%
Debt-to-total value 50%
Given the data in the above table, what is the terminal value of the
business (using the growing perpetuity formula)?
Max Points: 6
Earned Points: 6
Answer: Correct
# 3
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22/10/2024, 13:41 Exams | CFI
Question: Cash 100,000
Debt 60,000
Tax Rate 10%
Discount Rate 6%
Enterprise Value 500,000
Perpetual Growth Rate 4%
Given the data in the above table, calculate market capitalization of this
hypothetical company.
Max Points: 6
Earned Points: 6
Answer: Correct
# 4
Question: Cost of Equity 5%
Cost of debt 7%
% Debt 60%
% Equity 40%
Given the data in the above table, what is the weighted average cost of
capital of this company?
Max Points: 6
Earned Points: 6
Answer: Correct
# 5
Question: Which of the following companies has the lowest degree of leverage?
Max Points: 6
Earned Points: 6
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22/10/2024, 13:41 Exams | CFI
Answer: Correct
# 6
Question: Which of the following statements is correct?
Max Points: 6
Earned Points: 0
Answer: Incorrect
# 7
Question: Which of the following is the correct ordering of the capital stack (from
most secure to least secure)?
Max Points: 6
Earned Points: 6
Answer: Correct
# 8
Question: Which of the following debt repayment profiles involves a growing /
accrued interest amount over time?
Max Points: 6
Earned Points: 6
Answer: Correct
# 9
Question: Which of the following statements about capital structure are correct?
Select ALL correct answers.
Max Points: 6
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22/10/2024, 13:41 Exams | CFI
Earned Points: 0
Answer: Incorrect
# 10
Question: Which of the following is NOT a form of subordinated debt?
Max Points: 6
Earned Points: 6
Answer: Correct
# 11
Question: Which of the following best describes a leveraged buyout fund’s
acquisitions?
Max Points: 6
Earned Points: 6
Answer: Correct
# 12
Question: Which of the following are examples of institutional investors? Select ALL
correct answers.
Max Points: 6
Earned Points: 0
Answer: Incorrect
# 13
Question: Which of the following is not a function of public accounting firms?
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22/10/2024, 13:41 Exams | CFI
Max Points: 6
Earned Points: 6
Answer: Correct
# 14
Question: Which of the following M&A transaction equations is correct?
Max Points: 6
Earned Points: 0
Answer: Incorrect
# 15
Question: What should a company do if it wants to reduce the number of shares
outstanding?
Max Points: 6
Earned Points: 6
Answer: Correct
Total Max Points:
Total Earned Points: 66%
Time Used: 39:41
Score Percentile: 29
Overall Result: Failed
Final Score: 66%
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22/10/2024, 13:41 Exams | CFI
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