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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.

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Question 571

Investor owns 15% (FV method), then buys another 20% to reach 35% and applies equity method. At the step, the investor:

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Question 572

Investor owns 40% under equity method, then sells 10% and retains 30% with significant influence. The investor:

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Question 573

OCI gains that are later recycled to P&L. Under equity method, the investor:

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Question 574

ESG‑Linked Debt – Coupon Step‑Up A bond has base coupon 4%. If ESG targets are missed, coupon steps up by 75 bps. Probability of missing = 40%. Expected coupon?

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Question 575

ESG and Reinvestment Base reinvestment rate = 40%. Due to ESG capex, reinvestment rises to 48%. ROIC unchanged at 10%. Growth increases by:

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Question 576

Residual Income Valuation Book value of equity = 800 PV of future residual income = 200 Equity value?

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Question 577

FX‑Adjusted Cost of Equity USD cost of equity = 11% Expected USD depreciation vs EUR = 2% EUR cost of equity?

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Question 578

Residual Income Valuation Book value = 900 PV of future RI = 300 Equity value?

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Question 579

Normalized EBITDA EBITDA over cycle: 100, 200, 300, 150, 250 Normalized EBITDA?

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Question 580

Probability‑Weighted Terminal Value Terminal value scenarios: - 4,000 (prob 60%) - 2,000 (prob 40%) Discount rate = 10% PV?

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Question 581

FCFF from CFO CFO = 300 Interest = 50 Tax = 20% Capex = 120 ΔWC = 40 FCFF?

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Question 582

FCFE with Lease Capitalization NI = 250 Dep = 60 Capex = 100 ΔWC = 20 Lease principal = 30 Net borrowing = 40 FCFE?

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Question 583

Residual Income vs FCFE Residual income is most similar to:

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Question 584

Synergy PV with Ramp‑Up Synergies: Year 1 = 0 Year 2 = 20 Year 3 = 40 Year 4 onward = 60 (perpetuity) Discount rate = 10% PV?

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Question 585

Maximum Price with Synergies and Distress Standalone target value = 900 Synergy PV = 150 Distress cost PV = 50 Max price?

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Question 586

Goodwill with Contingent Consideration Fixed price = 800 Contingent consideration FV = 120 FV of net assets = 700 Goodwill?

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Question 587

Pro‑Forma Net Income Acquirer NI = 500 Target NI = 120 Synergies = 40 Amortization of intangibles = –20 Pro‑forma NI?

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Question 588

Accretion/Dilution – Break‑Even Synergy Acquirer EPS = 4.00 Post‑deal shares = 250 Acquirer standalone NI = 600 Target NI = 120 What minimum synergy is required to avoid EPS dilution?

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Question 589

Contribution Analysis with Synergies Acquirer standalone = 1,500 Target standalone = 1,000 Synergies = 600 If synergies are allocated pro‑rata to standalone values, target’s share of combined value is:

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Question 590

Goodwill Impairment – Two‑Step Goodwill = 500 Fair value of reporting unit = 900 Carrying value of net assets (excluding goodwill) = 450 Impairment?

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Question 591

Write‑Up Intangible book value = 200 Fair value = 350 Tax base = 200 Tax rate = 30% DTL?

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Question 592

In excess return (residual income/EVA) valuation, firm value is:

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Question 593

A reverse merger typically involves:

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Question 594

Under equity method, when investee has multiple share classes, investor’s share of earnings is based on:

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Question 595

ESG‑Adjusted ROIC ESG‑adjusted ROIC typically:

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Question 596

ESG‑Adjusted Terminal Value – Mechanism ESG‑adjusted terminal value most commonly reflects:

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Question 597

Capitalizing interest instead of expensing it tends to:

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Question 598

A key valuation challenge in reverse mergers is:

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Question 599

Spin‑Off – Value Creation Mechanism Spin‑offs can create value mainly by:

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Question 600

Carve‑Out – Minority Interest After an equity carve‑out of 30% of a subsidiary, the parent:

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Free CFA Corporate Issuers Practice Questions & Answers

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