Financial Calculations and Analysis Quiz

Test your knowledge with questions on compound interest, balance sheet, EBITDA, P/E ratio, CAPM, and more. Master financial calculations!

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What is the purpose of a balance sheet?

To record income and expenses

To analyze the financial health of a company at a specific point in time

To project future cash flows

To record daily transactions

What does ROI stand for in financial analysis?

Return on Investment

Rate of Interest

Revenue of Income

Rate of Inflation

What does the term 'EBIT' stand for?

Earnings Before Income Tax

Earnings Before Interest and Taxes

Earnings Before Income and Taxes

Earnings Before Interest and Turnover

What is the purpose of the cash flow statement?

To show the company's assets, liabilities, and shareholders' equity

To provide an overview of a company's operating, investing, and financing activities

To calculate the company's return on investment (ROI)

To assess a company's liquidity and solvency

What does the term 'DCF' stand for in finance?

Discounted Cash Flow

Diversified Cash Flow

Dividend Cash Flow

Deferred Cash Flow

What is the formula to calculate compound interest?

P = R * T

P = A - I

A = P(1 + r/n)^(nt)

A = P * R * T

What does the term 'EBITDA' stand for?

Earnings Before Interest and Taxes, Depreciation, and Amortization

Earnings Before Interest and Taxes, Dividends, and Assets

Earnings Before Income Tax Deductions and Amortization

Earnings Before Inflation, Taxes, Depreciation, and Amortization

What is the formula for the price-to-earnings (P/E) ratio?

P/E = Market Price / Earnings Per Share (EPS)

P/E = Earnings Per Share (EPS) / Market Price

P/E = Market Price * Earnings Per Share (EPS)

P/E = Earnings Per Share (EPS) - Market Price

What is the formula for calculating the present value of a future cash flow?

PV = FV / (1 + r)^n

PV = FV * (1 + r)^n

PV = FV * (1 - r)^n

PV = FV / (1 - r)^n

#10

What does the term 'IRR' stand for?

Internal Revenue Ratio

Investment Risk Return

Internal Rate of Return

Interest Rate Regression

#11

What is the formula for the dividend yield?

Dividend Yield = Dividend / Market Price

Dividend Yield = Market Price / Dividend

Dividend Yield = Dividend * Market Price

Dividend Yield = Market Price - Dividend

#12

What is the formula for the quick ratio?

Quick Ratio = (Current Assets - Inventory) / Current Liabilities

Quick Ratio = Current Assets / Current Liabilities

Quick Ratio = Current Assets / (Current Liabilities - Inventory)

Quick Ratio = Current Assets + Inventory / Current Liabilities

#13

What is the purpose of the DuPont analysis?

To calculate return on investment (ROI)

To measure a company's leverage

To assess the profitability of a company by breaking it down into its components

To evaluate liquidity ratios

#14

What is the purpose of the CAPM (Capital Asset Pricing Model)?

To estimate the cost of equity

To calculate the internal rate of return (IRR)

To evaluate a company's liquidity

To assess a company's debt-to-equity ratio

#15

What is the formula to calculate the Weighted Average Cost of Capital (WACC)?

WACC = (E/V * Re) + ((D/V * Rd) * (1 - Tc))

WACC = (E/V * Rd) + ((D/V * Re) * (1 - Tc))

WACC = (E/V * Re) - ((D/V * Rd) * (1 - Tc))

WACC = (E/V * Rd) - ((D/V * Re) * (1 - Tc))

#16

What is the formula to calculate the net present value (NPV) of a project?

NPV = CF / (1 + r)^n

NPV = CF * (1 + r)^n

NPV = CF / (1 - r)^n

NPV = CF * (1 - r)^n

#17

What is the formula for calculating the terminal value in a discounted cash flow (DCF) analysis?

Terminal Value = (FCF * (1 + g)) / (r - g)

Terminal Value = FCF / (r - g)

Terminal Value = FCF * (r - g)

Terminal Value = (FCF / (1 + g)) * (1 - r)