1. The return an investor demands to compensate for the risk that she is taking by investing in security is called: A. Market risk premium B. Expected return C. Required return D. None of the options

2. Which of the following relations is INCORRECT? A. CI = NPAT - OCI B. FCF = NFE - NFO + d C. CI = OI - NFE D. FCF = OI - NOA

3. Which of the following statements is TRUE? A. None of the options B. When using comparable company multiple approach for valuation, choice of multiple does not make a difference in valuation if we calculate multiples from the reformulated financial statements C. The terminal growth rate for a fast-growing company is higher than the nominal GDP growth rate of the country D. Value of the enterprise will be more that the current book value of net operating assets (NOA) if the enterprise is expected to generate positive residual operating income (ReOI) in future.

4. A company has made a passive investment by purchasing stocks (< 20 %) of another company. In the reformulated statement of cash flows, this item will be classified as: A. Cash flow from investing (I) B. Equity financing cash flows (d) C. Cash flow from operations (C) D. Debt financing cash flows (F)

5. What is the usual classification of investment in associates in the reformulated statement of financial position? A. Operating liabilities B. Operating assets C. Financial assets D. Financial obligation

6. A firm has P/E ratio of 15 and a price-to-sales ratio of 3. What should be the net profit margin? A. 30 % B. 20 % C. 5 % D. 10 %

7. Which of the following is an unlevered figure? A. Free cash flows B. Comprehensive income C. Net transactions with shareholders D. Common stockholder's equity

8. Which of the following statements is INCORRECT? A. None of the options B. Suppliers are more likely to be powerful if the supplier's industry is more concentrated that the industry it sells to C. Rivalry between existing competitors is likely to be higher when industry is growing very fast D. Suppliers are more likely to be powerful if they offer products which are differentiated

9. Use the following information: Common stockholders' equity (FY2022) = $ 90m Common stockholders' equity (FY2021) = $ 80m Weighted average cost of capital (WACC) = 10 % Cost of equity = 12 % Operating income after tax (FY2022) = $ 15m Comprehensive income after tax (FY2022) = $ 12m What was the Residual Income (RI) during FY2022? A. - $ 2.4m B. $ 1.2m C. - $ 1.2m D. $ 2.4m

10. Use the following information: Net property plant and equipment (FY2021) = $ 200m Net property plant and equipment (FY2022) = $ 190m Depreciation expense (FY2022) = $ 40m How much new investment in property plant and equipment was made during FY2022 if there was no disposal, no impairment, and no revaluation of PPE during the year? A. $ 50m B. $ 10m C. $ 40m D. $ 30m