1. Which of the following is NOT a profitability ratio?

A.ROA

B.Net Profit Margin

C.Cash Conversion Cycle

D.Gross Profit Margin

2. Which of the following is not a tool or technique used by a financial statement analyst?

A.Common-size financial statements

B.Industry comparisons

C.Random sampling analysis

D.Trend analysis

3. Which of the following is not true for Economic Moats?

A.Economic moats include the following factors:political, economic, social/cultural, technology, environmental and legal impact.

B.Economic moats refer to the long-term competitive advantage that allows a company to earn oversized profits over time.

C.Factors affecting economic moats include:Low-cost producers, high switching costs, network effect, or intangible assets.

D.Economic moats are either "wide", "narrow" or "none".

4. What do liquidity ratios measure?

A.The overall performance of the firm.

B.The liquidity of fixed assets.

C.The extent of a firm's financing with debt relative to equity.

D.A firm's ability to meet cash needs as they arise.

5. Google has a market beta of 1.16, if the market increases by 1.4% on a given day we would expect that Google's stock price would:

A.Increase by 1.39%

B.Increase by 1.62%

C.Decrease by 1.86%

D.Increase by 2.36%

6. There are two main valuation types: relative (based on what other companies are worth) and intrinsic (based on how much cash flow the company generates). Which of the following choices is an example of INTRINSIC valuation?

A.Leveraged Buyout (LBO) Model

B.Discounted Cash Flow (DCF)

C.Public Company Comparables

D.Precedent Transactions