22. Which business area would be unlikely to use financial modeling?

• Equity Research
• Human Resources
• FP&A
• Commercial Banking

23. It is time to update a model that only ran through 2019. Which steps will you take to update the fair value of your company's stock?

• Use a reasonable growth rate, then adjust the inputs in the model that rely on stock value with the most recent information.
• Use a reasonable growth rate, then adjust the inputs in the model that rely on stock value by the ending year in your previous model.
• Use a reasonable growth rate, then adjust the inputs in the model that rely on stock value by the growth rate you used.
• Use a reasonable growth rate, then adjust the inputs in the model that rely on stock value by the average in your previous model.

24. Which component in the financial valuation model is usually the most challenging?

• determining the terminal value
• computing the valuation on an asset
• calculating future cash flows
• determining the discount rate