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FMVA FINAL EXAM NEWEST 2026 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
A liquidity analysis would commonly be found under which section
of a pitchbook? - ANSWER-Company Overview
Using the financial statements attached, what is the company's
return on equity in year 5? - ANSWER-27.15%
Using the financial statements attached, what is the company's
return on assets in year 2? - ANSWER-25.09%
Using the financial statements attached, what is the company's
operating profit (EBIT) margin in year 1? - ANSWER-21.75%
Using the financial statements attached, what is the company's
net profit margin in year 1? - ANSWER-14.71%
Using the financial statements attached, what is the company's
effective tax rate in year 2? - ANSWER-28.06%
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Using the financial statements attached, what is the company's
total asset turnover ratio in year 3? - ANSWER-1.28x
Using the financial statements attached, what is the company's
accounts receivable days ratio in year 1? - ANSWER-4.0 days
Using the financial statements attached, what is the company's
inventory days ratio in year 5? - ANSWER-188.8 days
Using the financial statements attached, what is the company's
cash days ratio in year 3? - ANSWER-95.4 days
Using the financial statements attached, what is the company's
debt to equity ratio in year 1? - ANSWER-0.00x
Using the financial statements attached, what is the company's
total assets to equity ratio in year 2? - ANSWER-1.32x
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Using the financial statements attached, what is the company's
current ratio in year 3? - ANSWER-2.41x
When analyzing the income statement, which line item do you
typically use as the denominator in the ratio? - ANSWER-Sales
What is typically NOT included in a checklist used to identify
appropriate peer group companies? - ANSWER-Same type of
management team
What is the correct formula for calculating NOPAT? - ANSWER-
EBIT x (1 - Tax Rate)
When conducting financial analysis, what is the recommended
best practice for minimum number of years of financial
statements? - ANSWER-5 years
What are the three ROE levers of the DuPont pyramid? -
ANSWER-Net Profit Margin x Total Asset Turnover x Financial
Leverage
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Which of the following is NOT a characteristic of horizontal
analysis? - ANSWER-It is most effective when comparing one
period with each other.
Which current asset or liability is omitted from this ratio? -
ANSWER-Inventory
Which of the following retailers is most likely to have the lowest
inventory days? - ANSWER-A grocery store / supermarket
The proper structure of a 3-statement model should contain which
of the following modules? - ANSWER-Inputs, Calculations,
Outputs
Which of the following is a best practice for financial model
inputs? - ANSWER-Data should only be entered once
What is the formula for the Capital Asset Turnover Ratio? -
ANSWER-Sales/Property, Plant & Equipment
FMVA FINAL EXAM NEWEST 2026 ACTUAL EXAM WITH COMPLETE
QUESTIONS AND CORRECT DETAILED ANSWERS (100% VERIFIED
ANSWERS) |ALREADY GRADED A+| ||PROFESSOR VERIFIED||
A liquidity analysis would commonly be found under which section
of a pitchbook? - ANSWER-Company Overview
Using the financial statements attached, what is the company's
return on equity in year 5? - ANSWER-27.15%
Using the financial statements attached, what is the company's
return on assets in year 2? - ANSWER-25.09%
Using the financial statements attached, what is the company's
operating profit (EBIT) margin in year 1? - ANSWER-21.75%
Using the financial statements attached, what is the company's
net profit margin in year 1? - ANSWER-14.71%
Using the financial statements attached, what is the company's
effective tax rate in year 2? - ANSWER-28.06%
,2|Page
Using the financial statements attached, what is the company's
total asset turnover ratio in year 3? - ANSWER-1.28x
Using the financial statements attached, what is the company's
accounts receivable days ratio in year 1? - ANSWER-4.0 days
Using the financial statements attached, what is the company's
inventory days ratio in year 5? - ANSWER-188.8 days
Using the financial statements attached, what is the company's
cash days ratio in year 3? - ANSWER-95.4 days
Using the financial statements attached, what is the company's
debt to equity ratio in year 1? - ANSWER-0.00x
Using the financial statements attached, what is the company's
total assets to equity ratio in year 2? - ANSWER-1.32x
,3|Page
Using the financial statements attached, what is the company's
current ratio in year 3? - ANSWER-2.41x
When analyzing the income statement, which line item do you
typically use as the denominator in the ratio? - ANSWER-Sales
What is typically NOT included in a checklist used to identify
appropriate peer group companies? - ANSWER-Same type of
management team
What is the correct formula for calculating NOPAT? - ANSWER-
EBIT x (1 - Tax Rate)
When conducting financial analysis, what is the recommended
best practice for minimum number of years of financial
statements? - ANSWER-5 years
What are the three ROE levers of the DuPont pyramid? -
ANSWER-Net Profit Margin x Total Asset Turnover x Financial
Leverage
, 4|Page
Which of the following is NOT a characteristic of horizontal
analysis? - ANSWER-It is most effective when comparing one
period with each other.
Which current asset or liability is omitted from this ratio? -
ANSWER-Inventory
Which of the following retailers is most likely to have the lowest
inventory days? - ANSWER-A grocery store / supermarket
The proper structure of a 3-statement model should contain which
of the following modules? - ANSWER-Inputs, Calculations,
Outputs
Which of the following is a best practice for financial model
inputs? - ANSWER-Data should only be entered once
What is the formula for the Capital Asset Turnover Ratio? -
ANSWER-Sales/Property, Plant & Equipment
