Financial Analyst
Valuation and capital budgeting questions
185 questions on Valuation and capital budgeting for financial analysts, easiest first.
Easy 51
- Simple payback periodeasy
- Compound annual growth rateeasy
- Present value of one paymenteasy
- Future value with compoundingeasy
- Capex or opexeasy
- Basic earnings per shareeasy
- Price to earnings ratioeasy
- Why a rupee today is worth moreeasy
- Value of a payment forevereasy
- Basic NPV decision ruleeasy
- What IRR iseasy
- Rule of 72easy
- Quarterly compoundingeasy
- Using land the firm already ownseasy
- Raising the discount rateeasy
- Profitability indexeasy
- Payments at the start of each yeareasy
- Which cash flows counteasy
- Selling the machine at the endeasy
- New product hurts old saleseasy
- Weakness of paybackeasy
- Coupon below market yieldeasy
- The idea behind a DCFeasy
- Matching flows and rateseasy
- Cost of debt after taxeasy
- Reading a beta of 1.2easy
- Risk-free rate for an Indian DCFeasy
- Equity risk premiumeasy
- Choosing a terminal growth rateeasy
- Weights in the WACCeasy
- What NOPAT iseasy
- Calculating net debteasy
- How long to forecasteasy
- Why equity costs moreeasy
- WACC and growth grideasy
- Enterprise value or equity valueeasy
- Discount factor for year 3easy
- Picking a peer groupeasy
- Consistent multipleseasy
- Price to book ratioeasy
- Multiple for a loss-making startupeasy
- Dividend yieldeasy
- Earnings yieldeasy
- Deal multiples versus trading multipleseasy
- Pre-money and post-moneyeasy
- Trailing or forward multipleeasy
- The football field charteasy
- Market capitalisationeasy
- Book value and market valueeasy
- Sum-of-the-parts valuationeasy
- Valuing a property with a cap rateeasy
Medium 69
- NPV of a single future inflowmedium
- Unlevered free cash flowmedium
- Free cash flow to equitymedium
- Present value of an annuitymedium
- NPV with two inflowsmedium
- Discounted payback periodmedium
- Cost of equity with CAPMmedium
- Treating sunk costsmedium
- Working capital needed for growthmedium
- Growth when ROIC is below WACCmedium
- Leaving out interestmedium
- Corpus from a monthly SIPmedium
- Value of a growing perpetuitymedium
- Tax saved by depreciationmedium
- After-tax sale proceedsmedium
- NPV and IRR disagreemedium
- EMI on a business loanmedium
- Continuous compoundingmedium
- Working capital at project endmedium
- Head office charge on a projectmedium
- Accounting rate of returnmedium
- Return after tax on a depositmedium
- Replacing an old machinemedium
- One rate for every projectmedium
- IRR of an endless cash flowmedium
- IRR from an annuity factormedium
- Yearly project cash flowmedium
- Tax shield under WDVmedium
- Pricing a two-year bondmedium
- Price of a zero-coupon bondmedium
- What an unlevered beta showsmedium
- FCFF from the cash flow statementmedium
- Growth from reinvestmentmedium
- Adding a country risk premiummedium
- Cost of equity with a country premiummedium
- Using peer betasmedium
- Discount timing after a stubmedium
- Interest income in the forecastmedium
- Debt mix for the WACCmedium
- Coupon or yield for cost of debtmedium
- Cost of debt with no bondsmedium
- Cross-checking the terminal valuemedium
- Problems with a regression betamedium
- Debt-like items in the bridgemedium
- More debt to cut the WACCmedium
- Stakes in associatesmedium
- An implied 40x EBITDAmedium
- Cost of preference sharesmedium
- Bridge after an FCFE DCFmedium
- Which net debt to usemedium
- P/E relative to growthmedium
- Justified P/B from ROEmedium
- Why banks skip EV/EBITDAmedium
- Calendarising EBITDAmedium
- Mean or median of peersmedium
- Price from a forward P/Emedium
- Unlisted shares worth lessmedium
- Control and minority valuesmedium
- Same revenue, different valuemedium
- P/E for a loss-making firmmedium
- A big cash pile and P/Emedium
- Same EV/EBITDA, different capexmedium
- Holding company trades below NAVmedium
- Working out a SOTP valuemedium
- The rule of 40medium
- Multiple paid in a dealmedium
- Mismatched multiple and metricmedium
- Linking P/S to P/Emedium
- Fair value hierarchymedium
Hard 65
- Calculating WACChard
- Terminal value with perpetual growthhard
- From enterprise value to share pricehard
- Valuing with a peer EV/EBITDA multiplehard
- IRR of a two-year investmenthard
- How much value is in the terminalhard
- Relevering an unlevered betahard
- Discounting the terminal valuehard
- Growth implied by an exit multiplehard
- Mid-year convention discount factorhard
- Diluted shares with the treasury stock methodhard
- Equity bridge with minority interesthard
- When IRR gives more than one answerhard
- Probability-weighted scenarioshard
- Choosing EV/EBITDA over P/Ehard
- IRR with irregular dateshard
- Real and nominal discount rateshard
- Lease accounting and EBITDAhard
- Splitting the first EMIhard
- Is the acquisition premium worth ithard
- Valuing a share with the dividend discount modelhard
- Comparing projects of different liveshard
- Perpetuity that starts laterhard
- Where two NPV lines crosshard
- Discount rate for lease or buyhard
- MIRR with reinvestment at 10%hard
- Choosing projects with ₹10 crorehard
- Three years of growing cashhard
- Real model with tax depreciationhard
- IRR when cash comes in firsthard
- Dollar flows and a rupee ratehard
- Price change from durationhard
- Two kinds of break-evenhard
- Loan balance after 12 EMIshard
- Cost of skipping a cash discounthard
- Different rates in each yearhard
- Terminal value from value drivershard
- Growth that adds no valuehard
- Which tax rate in a DCFhard
- ESOP cost in a DCFhard
- Capex in the terminal yearhard
- Adjusted present valuehard
- A forecast that bends upwardhard
- Valuing a steel firm at the peakhard
- Growth forecast with no reinvestmenthard
- Turning a dollar rate into a rupee ratehard
- Carried-forward tax losseshard
- Discount rate for a small private firmhard
- Weights that depend on the answerhard
- A short two-stage DCFhard
- Returns that fade over timehard
- Option pool in the pre-moneyhard
- Exit with a liquidation preferencehard
- Cap rates rise by one pointhard
- Waiting before investinghard
- Value of being able to quithard
- Accretive stock acquisitionhard
- Accretive but value-destroyinghard
- Exit at today's peak multiplehard
- Down round with a full ratchethard
- Converting a note with a discounthard
- Cheapest-looking at the tophard
- Adjusting peer multiples for growthhard
- Head office costs in a SOTPhard
- Growth implied by the market pricehard