CFI FMVA 6 Latest Update - Actual

CFI FMVA 6 Latest Update - Actual Exam with 200 Questions and 100% Verified Correct Answers Guaranteed A+ Approved by the Professor

10. - CORRECT ANSWER: Deductible Temporary differences

Generally arise when the tax base of the assets is greater than the carrying amount Generally arise when there are differences that result in current accounting income being greater than taxable income Give rise to deferred tax assets

Taxable Temporary Diffferences Arise when the tax base of the liabilities is greater than the carrying amount Arise when the carrying amount of the liabilities is greater than the tax base Taxable Temporary Differences

3 statement modeling - CORRECT ANSWER:

• - CORRECT ANSWER: Conservatism principle:: It provides guidance on how to

record transactions when there is uncertainty.Historical Cost:It states that assets and liabilities are recorded on the financial statements at the cost at which they were acquired or assumed.Objectivity; It states that financial statements must be free from bias and based on verifiable evidence.Economic Entity: It states that transactions carried out by a business are separated from those conducted by its owner.Matching:It states that the expenses of a business should be recorded in the periods in which the corresponding revenues are earned.

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A discounted cash flow is typically comprised of two different stages or periods.Which of the following are the two different stages of a typical DCF, in chronological order? -

CORRECT ANSWER: Discrete Forecast; Terminal Value

A liquidity analysis would commonly be found under which section of a pitchbook? -

CORRECT ANSWER: Company Overview

A precedent transactions overview would appear under which section of an investment

banking pitchbook? - CORRECT ANSWER: Valaution Overview

A real-estate holdings company has the following fixed asset detail:Buildings: $25.0 Million; Useful Life 20-years.Land: $5.0 Million.Assuming straight-line depreciation, what

would the company's total annual depreciation expense be? - CORRECT ANSWER:

$1.25 million.

A sound accounting framework allows for all of the following benefits except: -

CORRECT ANSWER: Identical items being reported on the financial statements of

different companies

Accounting Principles and Standards - CORRECT ANSWER:

Accounting principles require us to recognize taxes when they are incurred. However, there is a difference in accounting between standard accounting principles and tax accounting. It's critical for an analyst to understand the difference.Which of the following is a correct statement?Select ALL that apply. - CORRECT ANSWER: Deferred taxes are taxes that will be deferred to a later period due to tax rules.Deferred taxes are non-cash taxes in the current period.Current taxes are cash taxes to be paid in the near term.

Although there are two different ways of deriving terminal value, either method must be discounted back to the valuation date.Open the attached Excel file and go to the worksheet labeled: 2-PV of Terminal 2 / 3

Using the perpetuity growth rate, calculate the present value of the terminal value. -

CORRECT ANSWER: $313,375

An unlevered DCF valuation will derive the implied enterprise value of a business, but many times we want to know the equity value per share.Please select the appropriate steps in calculating the equity value per share from an unlevered DCF. - CORRECT ANSWER: Equity Value per Share = Enterprise Value minus Debt plus Cash, all divided by diluted shares outstanding

Analysts use fully diluted shares outstanding when calculating equity value. Therefore, it's important to understand how to account for potentially dilutive securities.

Open the attached Excel file and go to the worksheet labeled: 5-Treasury Stock

Using the treasury stock method, calculate the number of additional shares issued from

stock options. - CORRECT ANSWER: 0.9 million shares

Applying a multiple to valuing a company is the ultimate outcome of Comparable Company Analysis.

Open the attached Excel file and go to the worksheet labeled: 3-Valuation 1

Calculate the target company's implied equity value per share. - CORRECT ANSWER:

$119.67

Applying a multiple to valuing a company is the ultimate outcome of Comparable Company Analysis.

Open the attached Excel file and go to the worksheet labeled: 4-Valuation 2 14

Using the average of the peer group, calculate the implied enterprise value. -

CORRECT ANSWER: $7,783

As an alternative to CTRL + C and then CTRL + V to perform copy and paste, what combination of keys (as outlined in the videos) will perform the same action? -

CORRECT ANSWER: CTRL + D

As an analyst, it's important to understand how invested cash flows compound into the future, as well as calculate the present value of a future cash inflow.

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