#1
What is the purpose of a balance sheet?
To analyze the financial health of a company at a specific point in time
ExplanationPurpose of balance sheet
#2
What does ROI stand for in financial analysis?
Return on Investment
ExplanationAcronym for ROI
#3
What does the term 'EBIT' stand for?
Earnings Before Interest and Taxes
ExplanationAcronym for EBIT
#4
What is the purpose of the cash flow statement?
To provide an overview of a company's operating, investing, and financing activities
ExplanationPurpose of cash flow statement
#5
What does the term 'DCF' stand for in finance?
Discounted Cash Flow
ExplanationAcronym for DCF
#6
What is the formula to calculate compound interest?
A = P(1 + r/n)^(nt)
ExplanationFormula for compound interest calculation
#7
What does the term 'EBITDA' stand for?
Earnings Before Interest and Taxes, Depreciation, and Amortization
ExplanationAcronym for EBITDA
#8
What is the formula for the price-to-earnings (P/E) ratio?
P/E = Market Price / Earnings Per Share (EPS)
ExplanationFormula for P/E ratio calculation
#9
What is the formula for calculating the present value of a future cash flow?
PV = FV / (1 + r)^n
ExplanationFormula for present value calculation
#10
What does the term 'IRR' stand for?
Internal Rate of Return
ExplanationAcronym for IRR
#11
What is the formula for the dividend yield?
Dividend Yield = Dividend / Market Price
ExplanationFormula for dividend yield calculation
#12
What is the formula for the quick ratio?
Quick Ratio = (Current Assets - Inventory) / Current Liabilities
ExplanationFormula for quick ratio calculation
#13
What is the purpose of the DuPont analysis?
To assess the profitability of a company by breaking it down into its components
ExplanationPurpose of DuPont analysis
#14
What is the purpose of the CAPM (Capital Asset Pricing Model)?
To estimate the cost of equity
ExplanationPurpose of CAPM
#15
What is the formula to calculate the Weighted Average Cost of Capital (WACC)?
WACC = (E/V * Re) + ((D/V * Rd) * (1 - Tc))
ExplanationFormula for WACC calculation
#16
What is the formula to calculate the net present value (NPV) of a project?
NPV = CF / (1 + r)^n
ExplanationFormula for NPV calculation
#17
What is the formula for calculating the terminal value in a discounted cash flow (DCF) analysis?
Terminal Value = (FCF * (1 + g)) / (r - g)
ExplanationFormula for terminal value calculation in DCF analysis