Corporate Finance Final Exam Questions And Answers links:
[FREE] Corporate Finance Final Exam Questions And Answers | HOT!
Posted on 5-Mar-2021
What is the greatest achievement in your financial career so far? If you could use just one type of statement to assess the financial health of a company, which would you choose and why? What are three types of short-term financing that our company...
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[GET] Corporate Finance Final Exam Questions And Answers | latest!
Posted on 9-May-2021
How do you explain complex financial topics to colleagues from other departments? How are the three primary types of financial statements connected to one another and why is this important? What are the three critical steps that a company in our...
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Corporate Finance Interview Questions (with Answers)
Posted on 19-Mar-2021
I enjoy seeing how my services can transform individuals' lives. Addressing strengths and weaknesses is a challenge that you'll face in nearly any type of interview. For a finance position, you should make your response specific to the skills and challenges that you face in this profession. Answer honestly, but frame your response in a way that makes it clear you're actively working to balance your weak points so they don't interfere with your job. Example: "My financial strength is budgeting. I enjoy exploring different budgeting methods and evaluating how the right type of budgeting can result in more accurate forecasting. My weakness is probably consistency. I like to take fresh approaches to routine tasks and sometimes have to create redundant reports so I can deliver statements in a format that's more familiar to managers each month. If your business finds itself in a difficult financial situation, it will need a finance professional who knows how to resolve the problem quickly.
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Corporate Finance: Final Exam
Posted on 13-Apr-2021
By asking this question, an interviewer may be trying to evaluate your ability to identify and solve issues related to paying current liabilities. Example: "To meet immediate cash needs, I would suggest using trade credit, bank loans or a bank overdraft. After solving the immediate cash flow problem, I would prioritize an in-depth review of all financial statements to prevent this type of situation in the future. This question tests your financial expertise regarding purchases. Provide a succinct answer that's easy for any professional to understand, regardless of their financial expertise. Example: "The purchase would increase your assets on the balance sheet.
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Corporate Finance - Mock Exam
Posted on 2-Apr-2021
On the year-end income statement, this asset will have depreciation. On the cash flow statement, the purchase can count as an investment activity. Finance professionals should know how a cash flow statement is organized and what this document can tell them. By asking this question, the interviewer could be trying to gauge your experience level within the finance industry, and your answer should reflect your expertise in cash-flow statements and how they are interpreted. Example: "A cash flow statement notes the cash from operating activities, investing activities and financing activities as well as supplemental information like interest or income taxes paid.
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Top Finance Interview Questions And Sample Answers
Posted on 12-Mar-2021
The cash flow statement accounts for major changes in the company's cash and cash equivalents as reported on balance sheets at the beginning and end of an accounting period. The DCF method helps companies plan for the future. In your response, you can demonstrate how you'll prepare the business for long-term success. Example: "The DCF method estimates investment value based on future cash flows. This helps a business estimate what its future earnings will be based on current cash flow. You would use this approach to plan mindfully for the future. Your ability to assign value to a business will tell the hiring manager how you can evaluate both the hiring company and its competitors. It can also demonstrate your knowledge of the company you are interviewing with and its industry. Example: "You can evaluate a company using assets, historical earnings, discount cash flow or future maintainable earnings, among other methods.
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Corporate Finance Flashcards
Posted on 13-May-2021
I would use historical earnings for a business with the longevity of yours to assess long-term trends. Equity financing and debt financing are distinct options that a business may consider. The hiring manager might ask this question to assess how you handle funding activities. Example: "A company might issue equity rather than debt to fund its operations because equity financing isn't as risky as using debt. Though you may lose some control to the investors, you will gain valuable stability and the opportunity to take a longer view of future planning. In positions where you work directly with clients, it's important to have solid customer service skills that will help you deal with challenging situations.
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Self Test Multiple Choice Questions
Posted on 1-Mar-2021
Hiring managers want to know that you can handle these situations smoothly while retaining clients and increasing loyalty. Example: "I've found that clients typically feel better about a situation when they feel heard. I practice active listening and repeat the customer's statements back to make sure I understand the issue correctly. I then validate the client's feelings and let them know it's understandable that they're feeling upset. This often diffuses the tension so I can better assist in finding the best solution for their needs.
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Corporate Finance Practice Exam
Posted on 26-Mar-2021
Approved calculators are permitted. You are not allowed to use Excel. This is a closed book exam. You are NOT permitted to access any other material in either written or electronic form. All numerical answers should be reported to TWO decimal places. To ensure the accuracy of your answer, you should perform all intermediate calculations to at least THREE decimal places. Choose FIVE questions. DO show your working. Question 1. What is the estimated cost of common equity for the company? What is the estimated after-tax cost of debt for the company? What is the estimated cost of preferred equity for the company? What is the estimated WACC of the company? What is the implied long run growth rate of the companys dividends?
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Corporate Finance Exam Questions And Answers Download
Posted on 20-Mar-2021
The factory will be depreciated over 25 years on a straight line basis i. The companys marginal tax rate is 40 percent. Assume that all cash flows occur at the end of the respective year. What is the total year 0 cash flow? What are the net operating cash flows in years 1, 2 and 3? What is the terminal year cash flow? If the projects cost of capital is 10 percent, what is the NPV of the project? What is the payback period of the project? What is the equilibrium expected return of Stock B? Consider Stock C, which has a beta of 0. Suppose that you have forecast a return of 8. Is Stock C is overpriced, underpriced or fairly priced? Suppose that you construct an arbitrage portfolio to exploit any mispricing that you might have found in Stocks A, B and C. What would the weights of this portfolio be? What is the equilibrium expected return of Stock A? Short selling is allowed. What is the expected return, standard deviation and coefficient of variation of P?
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Corporate Finance
Posted on 24-Apr-2021
Plot A and B in expected return-standard deviation space and draw approximately the feasible set for P. On this diagram, mark the minimum variance portfolio and the efficient set. Suppose that the correlation coefficient between A and B was What are the weights of the minimum variance portfolio? What would the risk free rate be if the correlation coefficient between A and B is -1? There are , shares of common stock outstanding, and there is no preferred stock. What would be WCCs EPS 1 under the old production process, 2 under the new process if it uses debt, and 3 under the new process if it uses common stock? At what unit sales level would WCC have the same EPS assuming it undertakes the investment and finances it with debt or with stock? On the basis of the analysis in Parts a through d and given that operating leverage is LOWER under the new setup, which of the three plans is the riskiest, which has the highest expected EPS, and which would you recommend?
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CFA Level 1 Corporate Finance: Our Cheat Sheet
Posted on 17-Apr-2021
The firm does not currently use preferred stock in its capital structure, and it does not plan to do so in the future. Its treasury staff has consulted with investment bankers. Elliott estimates that if it had no debt, its unlevered beta, bU, would be 1. Fill in the following tables. What is the firms optimal capital structure, and what would be its WACC at the optimal capital structure? If Elliotts managers anticipate that the companys business risk will increase in the future, what effect would this likely have on the firms target capital structure?
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Mba Corporate Finance Exam Questions And Answers
Posted on 24-Apr-2021
If Congress were to dramatically increase the corporate tax rate, what effect would this likely have on Elliotts target capital structure?
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Test On Corporate Finance For CFA Level 1: Quiz
Posted on 8-May-2021
Part 1 — Corporate Finance Interview Questions Basic This first part covers basic corporate finance interview questions and answers. The objective of Financial Statements is to provide financial information about the reporting entity that is useful to exist and potential investors, creditors, and lenders in making decisions about whether to invest, give credit or not. There are mainly three types of financial statements which a company prepares. Income Statement — Income Statement tells us about the performance of the company over a specific account period. Financial performance is given in terms of revenue and expense generated through operating and non-operating activities. Balance Sheet — Balance Sheet tells us about the position of the company at a specific point in time.
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Harvard Corporate Finance Final Exam 1
Posted on 13-Mar-2021
Cash Flow from Financing consists of cash inflows and outflows generated from all the financing activities of the company like issuance of Bonds or early retirement of Debt. Let us move to the next Corporate Finance interview question. Short-term financing is done by the company to fulfill its current cash needs. Short-term sources of finance are required to be repaid within 12 months from the financing date. Trade Credit is an agreement between a buyer and a seller of goods. In this case, the buyer of the goods purchases the goods on a credit i. In this case, an individual or a business entity can withdraw cash more than what is present in the account. Interest is charged on the amount of over-draft which is withdrawn as a credit from the bank.
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Managerial Finance For MBA: Past Exam Paper For Revision
Posted on 13-Apr-2021
Unsecured Bank Loan is a type of credit that banks are ready to give and is payable within 12 months. The reason why it is called an unsecured bank loan is that no collateral is required by the individual or a business entity taking this loan. Working capital tells us about the amount of capital tied up to its business daily activities such as account receivables , payables, inventory in hand and many more. The purchase of Assets is a transaction done by the company which will impact all the three statements of the company.
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21 FIN Corporate Finance Week 1 To 6 Ideas | This Or That Questions, Week, Homework Help
Posted on 13-Mar-2021
Hence, the balance sheet of the company will be tallied. In Income Statement, there will be no impact on the first year of income statement but after the first year, the company will have to charge depreciation expense on the purchased equipment which the company will have to show it in the Income Statement of the company. Cash Flow Statement, assuming that only cash has been paid by the company to purchase the equipment.
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Corporate Finance Practice Exam Questions
Posted on 2-May-2021
Future markets have clearinghouses that manage the market and therefore, there is no counterparty risk. Forwards Contract is a customizable contract which means that the buyer or seller can buy or sell any amount of contract they wish to. These contracts are OTC over the counter contracts i. These contracts do not have a clearinghouse and therefore, the buyer or the seller of the contract is exposed to the counterparty risk. Also, do check this detailed article on Forwards vs Futures 9 — What are the different types of Bonds? A bond is a fixed-income security that has a coupon payment attached to it which is paid by the bond issuer annually or as per the conditions set at the time of issuance. These are the types of bonds: Corporate Bond , which is issued by the corporations. Sovereign National Bond is a bond issued by the government of the country. A bond that is repaid by the issuing entity by the cash flows which come from the asset set as collateral for the bond issued is known as securitized Bond.
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Corporate Finance Flashcards & Quizzes | Brainscape
Posted on 19-Mar-2021
We can understand by the example: A bank sells its house loans to a Special Purpose Entity and then that entity issues the bonds which are repaid by the cash flows generated by those house loans, in this case, it is the EMI payments made by the house owners. Deferred Tax Liability is a form of tax expense that was not paid to the income tax authorities in the previous years but is expected to be paid in future years. This is because of the reason that the company pays less in taxes to the income tax authorities than what is reported as payable. For example, if a company uses a straight-line method for charging depreciation in its income statement for shareholders but it uses a double-declining method in the statements which are reported to income tax authorities and therefore, the company reports a Deferred Tax Liability as the paid less than what was payable.
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15 Corporate Finance Quizzes Online, Trivia, Questions & Answers - ProProfs Quizzes
Posted on 6-May-2021
First of all, financial modeling is a quantitative analysis that is used to make a decision or a forecast about a project generally in the asset pricing model or corporate finance. Different hypothetical variables are used in a formula to ascertain what future holds for a particular industry or for a particular project. These forecasts are in turn used for company valuations and financial analysis. With respect to Investment Banking , you can talk about the Financial Models that you have prepared. You may refer to these Financial Modeling Templates. There are few common multiples which are frequently used in valuation —.
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Harvard Corporate Finance Final Exam Help 1 Solutions
Posted on 14-May-2021
Interest payments on debt are tax exempt; dividends to shareholders are paid from after-tax funds. What is the weighted average cost of capital WACC for this firm? What is the return expected by shareholders on the equity? Assets that can be sold without losing value have little cost of bankruptcy. These assets lose value in bankruptcy, so the cost of bankruptcy is high. These assets do not lose value in bankruptcy, so the cost of bankruptcy is low. Suppose that hotels and pharmaceutical firms have the same expected return on assets at their optimal debt-to-equity ratios and both types of firms have higher returns on equity than returns on debt. Assume that the optimal capital structure depends on the cost of bankruptcy, and both hotels and pharmaceutical firms are at their optimal capital structures.
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Corporate Finance Past Papers Pdf
Posted on 12-Mar-2021
We infer that A. Hotels have higher debt-to-equity ratios and higher costs of equity capital. Hotels have higher debt-to-equity ratios and lower costs of equity capital. Hotels have lower debt-to-equity ratios and higher costs of equity capital. Hotels have lower debt-to-equity ratios and lower costs of equity capital. Hotels have lower debt-to-equity ratios and the same costs of equity capital. Answer 1. Other firms with low costs of bankruptcy are retail stores selling to the general public, supermarkets, and department stores. A higher debt-to-equity ratio increases the value of the debt tax shields, thereby increasing the value of the firm, but it also increases the probability of bankruptcy.
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Corporate Finance Exam Questions And Answers Download | Amazon On 1medicoguia.com
Posted on 19-May-2021
If the cost of bankruptcy is high, the higher probability of bankruptcy soon outweighs the value of the tax shields. The present value of the debt tax shields rises, and the average debt-to-equity ratio rises. The present value of the debt tax shields falls, and the average debt-to-equity ratio falls. The present value of the debt tax shields rises, and the average debt-to-equity ratio falls. The present value of the debt tax shields falls, and the average debt-to-equity ratio rises. The present value of the debt tax shields does not change, and the average debt-to-equity ratio falls. If the Congress raises the corporate tax rate, the present value of the debt tax shields increases.
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Mba Corporate Finance Exam Questions And Answers - FinanceViewer
Posted on 18-Mar-2021
The equilibrium point where the present value of the debt tax shields equals the cost of bankruptcy is at a higher percentage of debt.
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