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Financial Metrics and Valuation Methods

This document contains 9 multiple-choice questions on financial concepts such as operating leverage, weighted average cost of capital, beta, expected rate of return, and business valuation methods. Each question presents 4 answer options, and the feedback indicates which is the correct answer.

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6 views12 pages

Financial Metrics and Valuation Methods

This document contains 9 multiple-choice questions on financial concepts such as operating leverage, weighted average cost of capital, beta, expected rate of return, and business valuation methods. Each question presents 4 answer options, and the feedback indicates which is the correct answer.

Uploaded by

ScribdTranslations
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

If a 10% increase in sales shows a 40% increase in the

UAII, we can affirm that:


Select one:

The GAO is 4
b. The GAF is 4
c. The CAT is 4
d. The GAF is 4%
Feedback
The correct answer is: The GAO is 4
Question2
Without answering
Score as 1.0

Mark question

Statement of the question


When a company is valued using the discounted cash flow method, future cash flows are brought to present value.
present value of future cash flows with a discount rate that refers to the:
Select one:
a. Kd
b. Wacc
c. Ke
d. Kdt
Feedback
The correct answer is: Wacc
Question 3
Correct
Score 1.0 out of 1.0

Mark question
Statement of the question
A company in year 2 had 1,060,982,589 shares outstanding. The price of each
The stock was 32.16 euros and the price of all the shares (market capitalization) was,
consequently, 34.121 million euros. The profit in year 1 was 1.583 million.
euros and the earnings per share 1.37 euros. Therefore, the P/E ratio of this company in year 2
was
Select one:
EUR 24.55
EUR 27.55

c. EUR 21.55
EUR 29.55
Feedback
The correct answer is: EUR 21.55
Question 4
Correct
Score 1.0 out of 1.0

Mark question

Statement of the question


In the cycle of a securitization, several agents are involved, among them is the structurer.
of the process who is the:
Select one:
a. Responsible for managing (administrative entity) and collecting the flows generated by the
titles.
b. It is that person, natural or legal, who owns the assets that are going to be securitized.
c. The person responsible for carrying out the securitization process, which consists of transforming the
active in title
d. Responsible for making the financial projections of the issuance, its risk analyses,

the design of the titles and their market study


Feedback
The correct answer is: Responsible for making the financial projections of the issuance.
its risk analysis, the design of the titles, and its market study
Question 5
Correct
Score 1.0 out of 1.0

Mark question

Statement of the question


A company is leveraged with two banking establishments for $201 million.
10.9% and $180 million at 11.4% respectively, if shareholders expect a return
about your $125 million investment at 10% and considering a tax rate of 34%,
the weighted average cost of debt will be:
Select one:
9.51%
b. 7.14%

c. 8.00%
d. 6.82%
Feedback
The correct answer is: 8.00%
Question 6
Correct
Score 1.0 out of 1.0

Mark question

Statement of the question


The definition of Degree of Operating Leverage is:
Select one:
a. Effect of the variations of the UAII on the UPA

b. Effect of variations in sales on variations in EBITDA


c. Effect of sales variations on the UPA
d. Effect of sales on the break-even point
Feedback
The correct answer is: Effect of variations in sales on variations in
UAII
Question 7
Correct
Score 1.0 out of 1.0

Mark question

Statement of the question


A company reports for periods 1, 2, and 3, a UAII of $40 million, $45 million and
$50 million pesos, on the other hand, some operational assets worth $420 million, $403
millions and $421 million pesos; finally, a net investment for year 1 is estimated to be
$70 million. With this information and considering a tax rate of 34%, the value
of the company using the discounted cash flow method taking into account a WACC
of 10.3% and a growth rate of 6.2% is:
Select one:

a. [Link]
b. [Link]
c. [Link]
d. [Link]
Feedback
The correct answer is: [Link]
Pregunta8
Correct
Score 1.0 out of 1.0

Mark question

Statement of the question


the expected return on a stock is 35% annually, at the same time, the expected dividend
At the end of the first year, it is $1100 and its expected value at the end of that period is $7,600;
With this information, we can say that the price of the stock in the market is:
Select one:
6,589.72

b. 6,444.44
c. 5,910.86
d. 7,250.93
Feedback
The correct answer is: 6,444.44
Question 9
Incorrect
Score 0.0 out of 1.0

Mark question

Statement of the question


One of the most important decisions a company has to make has to do with the
financing decisions both internal and external and the cost incurred by the company,
from here the consequent optimal capital structure. According to the above, the cost of
capital is based on calculating the financial cost of:
Select one:
a. Commercial credits and Payroll
b. Obligations with financial entities (cost liabilities) and retained earnings
(long-term liabilities)
c. Obligations with financial entities (cost liabilities), equity

d. Commercial credits and obligations with financial entities (long-term)


Feedback
The correct answer is: Obligations with financial entities (cost liabilities),
heritage
Pregunta10
Correct
Score 1.0 out of 1.0
Mark question

Statement of the question


The GAF measures the relationship between:
Select one:

a. Operating income and income before taxes


b. The company's sales revenue and its earnings before interest and taxes
c. Sales and earnings per share
d. The company's sales revenue and its profits after interest and taxes
Feedback
The correct answer is: Operating profit and profit before taxes

Operating leverage is defined as:


Select one:

a. The way in which a change in sales volume affects the EBITDA

b. The way a change in the UAII affects earnings per share

c. The way a change in sales affects earnings per share

d. The way a change in gross profit affects equity

Feedback
The correct answer is: The way a change in sales volume affects the EBIT
Question2
Correct

Score 1.0 out of 1.0

Mark question
Statement of the question
The variables that serve as tools to determine the weighted average cost of
capital son
Select one:

a. Value of the debt, administrative expenses, value of equity, and cost of equity

b. After-tax cost of debt, value of debt, value of equity, and cost

of the heritage

c. Net present value, Cost of equity, value of debt and cost of equity

d. Cost of debt after taxes, equity value, debt value, and costs
of transaction

Feedback
The correct answer is: Cost of debt after taxes, value of debt, value
of equity and cost of equity
Question 3
Correct

Score 1.0 out of 1.0

Mark question

Statement of the question


If a company presents a DTF rate of 7%, a Beta of 1.15, and the S&P of 12.3%, the rate
expected by the investor will be:
Select one:

12.10%

b. 14.10%

approximately 15.10%

d. 13.10%

Feedback
The correct answer is: 13.10%
Question 4
Correct

Score 1.0 out of 1.0

Mark question

Statement of the question


A company is capable of producing and selling 11,000 units at a selling price
from $2,500 per unit, variable costs per unit of $1,900 and fixed operating costs of
$4,100,000. With this information, the GAO of this company will be:
Select one:

a. 2.64

b. 2.74

c. 3.74

d. 3.64

Feedback
The correct answer is: 2.64
Question5
Correct

Score 1.0 out of 1.0

Mark question

Statement of the question


If a 10% increase in UAII is evidenced by a 12% increase in UPA,
we can affirm that:
Select one:

The GAO is 12
b. The GAF is 1.2

c. The CAT is 120

d. The GAF is 12

Feedback
The correct answer is: The GAF is 1.2
Question 6
Incorrect

Score 0.0 out of 1.0

Mark question

Statement of the question


The valuation method called mixed, which includes in addition to the accounts of
results the union of experts to represent the value of intangible elements or
intangible factors that cannot be captured in figures and that provide an advantage over others
sector is the method by:
Select one:

a. Multiples

b. Discounting of cash flows

c. Good Will

d. Creation of value

Feedback
The correct answer is: Multiples
Question 7
Correct

Score 1.0 out of 1.0


Mark question

Statement of the question


To begin calculating the Weighted Average Cost of Capital, the following are involved
elements:
Select one:

a. Liabilities, Equity with their corresponding cost or interest rate

b. Assets, liabilities and equity

c. Assets, Liabilities, equity, with their corresponding costs or interest rates

d. Liabilities and Labor Obligations

Feedback
The correct answer is: Liabilities, Equity with their corresponding cost or interest rate.
Question 8
Correct

Score 1.0 out of 1.0

Mark question

Statement of the question


A company was given a risk-free market premium of 7.5%. beta of risk
assigned at 1.9 and a risk-free rate of 4.6% is taken, with this company's data,
the expected total return is:
Select one:

a. 15.37%

b. 13.53%

c. 14.32%
10.11%

Feedback
The correct answer is: 10.11%
Question9
Correct

Score 1.0 out of 1.0

Mark question

Statement of the question


The definition of Financial Leverage Ratio is:
Select one:

a. Effect of variations in the UAII on the UPA

b. Effect of sales variations on variations in the EBITDA

c. Effect of sales variations on the UPA

d. Effect of sales on break-even point

Feedback
The correct answer is: Effect of variations in UAII on UPA
Question10
Correct

Score 1.0 out of 1.0

Mark question

Question statement
The variables used to determine the CAPM are:
Select one:
a. The direct risk of the project, expected market return rate, and profitability rate

of a risk-free asset

b. The direct risk of the project, internal rate of return, and rate of return on an asset
risk-free

c. The direct risk of the project, the expected market return rate, and the opportunity cost rate

d. The minimum required rate of return, market expected return rate and rate of
return on a risk-free asset

Feedback
The correct answer is: The direct risk of the project, expected rate of return of
market and rate of return of a risk-free asset

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