#1
What is the formula to calculate Return on Investment (ROI)?
ROI = (Current Value - Initial Investment) / Initial Investment
ExplanationMeasure of investment profitability.
#2
Which of the following is a measure of a company's profitability?
EBITDA
ExplanationIndicator of earnings.
#3
Which financial statement reports a company's revenues and expenses over a specific period?
Income statement
ExplanationOverview of financial performance.
#4
What does the term 'EBIT' stand for in finance?
Earnings Before Interest and Taxes
ExplanationIndicator of operating profitability.
#5
Which of the following is NOT considered a measure of a company's liquidity?
Debt-to-Equity ratio
ExplanationIndicator of financing structure.
#6
What does the Debt-to-Equity ratio indicate?
The proportion of debt and equity in a company's capital structure
ExplanationShows financing mix.
#7
Which of the following is a measure of a stock's volatility?
Beta coefficient
ExplanationIndicator of risk.
#8
What is the CAPM formula used for?
Measuring the relationship between risk and expected return
ExplanationAssessment of risk-adjusted return.
#9
What does the PEG ratio assess?
Growth potential
ExplanationEvaluation of growth relative to valuation.
#10
Which financial ratio measures a company's efficiency in utilizing its assets to generate revenue?
Asset turnover ratio
ExplanationEfficiency metric.
#11
What is the formula to calculate Free Cash Flow (FCF)?
FCF = Net Income + Depreciation - Capital Expenditure
ExplanationMeasure of company's cash generation.
#12
What is the purpose of the DuPont analysis in financial analysis?
To decompose return on equity into its component parts
ExplanationAnalysis of profitability drivers.