Free Questions › CFA › Corporate Issuers

Free CFA Corporate Issuers Practice Questions & Answers

900 exam-style Corporate Issuers questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.

100% free · No login to start

Question 541

Synergies: Cost savings = 35 Revenue uplift = 60 at 25% margin Operating profit impact?

Select an option first.

Question 542

Economic vs Accounting Depreciation Which statement is most accurate?

Select an option first.

Question 543

FCFF from EBIT Which formula is correct for FCFF from EBIT?

Select an option first.

Question 544

Earn‑Out – Expected PV An earn‑out pays 50 if EBITDA exceeds 200 next year. Probability of exceeding 200 is 40%. Discount rate = 10%. Expected PV?

Select an option first.

Question 545

Break‑Even Exchange Ratio – EPS Neutrality Acquirer EPS = 4.0, Target EPS = 2.5, no synergies, all‑stock deal. For EPS neutrality, the exchange ratio must be:

Select an option first.

Get the full CFA question bank — free

Drop your email and we'll send you fresh CFA practice questions, fully worked solutions and exam-deadline reminders. No spam — unsubscribe in one click.

Want to save your score and take a full mock exam? Create a free account →

Question 546

Acquirer standalone value = 1,200; Target standalone value = 800. Equity split in the combined entity: Acquirer 60%, Target 40%. Which is true?

Select an option first.

Question 547

Purchase Price Allocation (PPA) PPA primarily:

Select an option first.

Question 548

Upstream vs Downstream Transactions In an upstream sale (investee → investor) with unrealized profit in ending inventory, the investor:

Select an option first.

Question 549

Mid‑Year vs End‑Year Discounting Using mid‑year discounting instead of end‑year discounting will:

Select an option first.

Question 550

OCI losses, the investor under the equity method:

Select an option first.

Question 551

Reinvestment Rate from FCFF NOPAT = 300, FCFF = 180. Reinvestment rate?

Select an option first.

Question 552

Cost of Equity – Multi‑Factor Model: r = 3% + 1.2×(5%) + 0.4×(2%) – 0.3×(1%)

Select an option first.

Question 553

FCFF Calculation EBIT = 500 Tax = 25% Dep = 80 Capex = 150 ΔWC = 40

Select an option first.

Question 554

FCFE Calculation FCFF = 300 Interest = 60 Tax = 20% Net borrowing = 40

Select an option first.

Question 555

EBITDA in year 5 = 300 Exit multiple = 9× Discount rate = 10% PV of terminal value?

Select an option first.

Question 556

ROIC NOPAT = 240 Invested capital = 1,800

Select an option first.

Question 557

Reinvestment Rate NOPAT = 400 FCFF = 250

Select an option first.

Question 558

FCFE from Net Income NI = 300 Dep = 70 Capex = 120 ΔWC = 40 Net borrowing = 30

Select an option first.

Question 559

Mid‑Year Terminal Value Terminal value at year 5 = 3,000 Discount rate = 10% Mid‑year discounting applies

Select an option first.

Question 560

Synergy PV Cost synergies = 40 annually starting year 3 Discount = 9%

Select an option first.

Question 561

Maximum Acquisition Price Standalone value = 900 Synergy PV = 150

Select an option first.

Question 562

Revenue Synergy Revenue uplift = 100 Margin = 30% Operating profit impact?

Select an option first.

Question 563

Cost Synergy After‑Tax Cost savings = 50 Tax = 25%

Select an option first.

Question 564

Goodwill Impairment Goodwill = 400 Impairment = 20%

Select an option first.

Question 565

Multi‑Stage Reinvestment Rate Stage 1 (years 1–3): ROIC = 14%, growth = 7%. Stage 2 (thereafter): ROIC = 10%, growth = 4%. Reinvestment rate in Stage 1 and Stage 2?

Select an option first.

Question 566

Normalized Earnings for Cyclicals A cyclical firm’s earnings over 5 years: –20, 40, 80, –10, 60. A normalized earnings estimate for valuation is best taken as:

Select an option first.

Question 567

Probability‑Weighted Valuation A distressed firm has two scenarios in 1 year: - Survive: value = 800 (prob 60%) - Liquidate: value = 200 (prob 40%) Discount rate = 12%. Current value?

Select an option first.

Question 568

Contribution Analysis with Synergies Acquirer standalone value = 1,200 Target standalone value = 800 Synergies PV = 400 Total combined value = 2,400. Target’s value contribution (including synergies allocated proportionally to standalone values) is:

Select an option first.

Question 569

Earn‑Out with Multiple Scenarios Earn‑out pays: - 60 if EBITDA > 250 (prob 30%) - 30 if 200–250 (prob 40%) - 0 otherwise (prob 30%) Discount rate = 10%. PV?

Select an option first.

Question 570

PPA with Contingent Consideration Purchase price (fixed) = 900 Fair value of contingent consideration = 100 Fair value of net identifiable assets = 800 Goodwill?

Select an option first.

Before you go, can we ask you one thing?

Thank you

Free CFA Corporate Issuers Practice Questions & Answers

Privacy Preference

Before you go, can we ask you one thing?

Thank you