Advanced Financial Management Test Preparation
Course Introduction
Advanced Financial Management explores the principles and strategies essential for effective corporate financial decision-making. The course covers topics such as capital structure, risk management, valuation of financial assets, mergers and acquisitions, and international financial management. Emphasis is placed on applying theoretical frameworks to real-world scenarios, using analytical tools to assess investment opportunities, managing corporate resources, and navigating the complexities of global financial markets. Suitable for students aiming to develop a comprehensive understanding of high-level financial strategies within contemporary business environments.
Recommended Textbook
Investment Banking Valuation Leveraged Buyouts and Mergers and Acquisitions by Joshua Rosenbaum
Available Study Resources on Quizplus
7 Chapters
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/study-set/3930
Page 2
Chapter 1: Comparable Companies Analysis
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/78386
Sample Questions
Q1) Based on Moody's rating scale, what grade is Baa1 considered?
A)High quality
B)Highly speculative
C)Medium grade
D)Extremely speculative
Answer: C
Q2) Calculate the EBITDA margin given the following information.
\(\bullet\)EBITDA: $200.0m
\(\bullet\)COGS: $200.0m
\(\bullet\)Sales: $1,000.0m
\(\bullet\)Net income: $150.0m
A)20%
B)15%
C)40%
D)25%
Answer: A
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Precedent Transactions Analysis
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/78385
Sample Questions
Q1) Which form of consideration typically triggers a taxable event?
A)All-cash
B)Stock-for-Stock
C)Cash/stock mix
D)None
Answer: A
Q2) In a floating ratio structure, the number of shares exchanged fluctuates in accordance with which of the following?
A)Movement of the acquirer's share price
B)Movement of the target's share price
C)Market movement
D)Sector movement
Answer: A
Q3) Which of the following is true regarding the number of the acquirer's shares exchanged in a fixed exchange ratio structure?
A)It remains constant
B)It goes up
C)It fluctuates
D)It goes down
Answer: A
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Discounted Cash Flow Analysis
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/78384
Sample Questions
Q1) All of the following assets can be amortized EXCEPT:
A)Copyrights
B)Patents
C)Goodwill
D)PP&E Answer: D
Q2) In a DCF analysis, what is used to capture the remaining value of the target beyond the projection period?
A)Intrinsic value
B)Terminal Value
C)WACC
D)Enterprise Value
Answer: B
Q3) In which calculation is the exit multiple method or the perpetuity growth method used?
A)Present value
B)Terminal value
C)WACC
D)FCF Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Leveraged Buyouts
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/78383
Sample Questions
Q1) What is the classification of a covenant that requires to buyer to maintain a minimum EBITDA?
A)Affirmative
B)Negative
C)Maintenance
D)Financial
Q2) What kind of loan is needed if the "take-out" securities deteriorate between the signing and the closing of an LBO?
A)Bridge loan
B)Second lien term loan
C)PIK
D)Mezzanine debt
Q3) When performing a returns analysis in an LBO, which method does not include the time value of money?
A)IRR
B)DCF
C)Cash return analysis
D)Perpetuity growth method
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Lbo Analysis
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/78382
Sample Questions
Q1) Which part of the pro forma balance sheet is affected by the debt schedule?
A)Long-term liabilities
B)PP&E
C)Short-term assets
D)Goodwill
Q2) The ending cash balance on the cash flow statement is linked to the:
A)Retained earnings
B)Cash and cash equivalents
C)Income statement
D)Long-term assets
Q3) In a traditional LBO analysis, it is common practice to assume an exit multiple that is:
A)Below the entry multiple
B)Above the entry multiple
C)Equal to the entry multiple
D)Both A and C
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Sell-Side Ma
Available Study Resources on Quizplus for this Chatper
33 Verified Questions
33 Flashcards
Source URL: https://quizplus.com/quiz/78381
Sample Questions
Q1) Which document has the purchase price details as well as the exact date and guidelines for an M&A process?
A)CIM
B)Bid procedures letter
C)Confidentiality agreement
D)Final bid procedures letter
Q2) When is an issues list used in the M&A sale process?
A)After the potential buyer submits the revised definitive agreement
B)Before the seller send the revised definitive agreement
C)If the buyer does not want to submit a revised definitive agreement before it is informed it won the auction
D)At the beginning of the M&A sale process
Q3) When evaluating strategic buyers, which of the following should be taken into consideration?
A)Financial capacity
B)Sector expertise
C)Investment strategy
D)Both A and B
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Buy-Side Ma
Available Study Resources on Quizplus for this Chatper
28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/78380
Sample Questions
Q1) A company that brings together a broad range of businesses is considered:
A)Horizontally integrated
B)A conglomerate
C)An oligopoly
D)Vertically integrated
Q2) All of the following are intangible assets EXCEPT:
A)Brand
B)Patents
C)PP&E
D)Copyrights
Q3) Acquirer share price volatility after a deal is announced is a reason why a target's shareholders may find:
A)Equity financing less desirable
B)Debt financing less desirable
C)Equity financing more desirable
D)A mix of debt and equity financing is less desirable
To view all questions and flashcards with answers, click on the resource link above.
9