MBA Exit Exam Full Latest 2026
Updated Questions and Verified
Answers (2026/2027) | Graded A+ |
100% Success
what 3 decision criteria does NPV meet? - Correct Answer -1. It adjusts for the
time-value of money2. It adjusts for risk3. It provides information on whether a
project will deliver value for a firm
internal rate of return (IRR) - Correct Answer -IRR shows the "break-even" interest
rate - is the project a better proposition than the outside opportunity cost? If IRR
is greater than the required return, accept the project.
IRR can be unreliable with... - Correct Answer -1. Non-conventional cash flows
(can generate two IRR's)2. Mutually exclusive projects
why is FCF superior to NY? - Correct Answer -(1) NY does not recognize if you've
bought or sold assets(2) NY recognizes depreciation, which is a non-cash expense
,5 uses of FCF - Correct Answer -(1) Pay interest on debt(2) Pay principal(3) Buy
back stock(4) Pay dividends(5) Invest in non-operating assets
economic darwinism - Correct Answer --don't fix something unless it's broken-if
firms stay with an operating procedure for a long time, then it is likely that it the
benefits are excess to the cost- successful firms will be imitated- helps identify the
cost and benefits of alternative internal accounting systems
accounting exposure - Correct Answer -variability in the firm's reported values for
NI and net worth that results from changes in exchange rates
amortized loan - Correct Answer -loan that's paid off in periodic equal installments
and includes varying portions of principal and interest during its term
arbitrage-pricing model (APM) - Correct Answer -theory that relates stock returns
and risk. maintains that security returns vary from their expected amounts when
there are unanticipated changes in basic economic forces (unexpected changes in
industrial production, inflation rates, terms structure of interest rates, and diff
between interest rates of high and low risk bonds)
,bailment - Correct Answer -exists when possession of property belonging to one
person is delivered to another person who intends to assume custody or control
over the property and who expressly or implicitly promises to return it to the
owner or dispose of it as directed by the owner
book value - Correct Answer -depreciated value of a co's assets (OG cost - AD) less
O/S liabilities
capital asset pricing model (CAPM) - Correct Answer -formula according to which a
security's expected return = risk-free rate + risk premium. model shows the
relationship between an investment's expected (or required) return and its beta.
can be used to estimate cost of equity of a firm or project
coefficient of determination - Correct Answer -proportion of the total variation in
the dependent variable that's explained by the regression equation
coefficient of variation - Correct Answer -measure of relative dispersion of a
probability distribution. risk per unit of return. math defined as std
deviation/expected value
, direct quote - Correct Answer -value of a foreign currency in units of the domestic
currency
dupont formula - Correct Answer -breakdown of ROI into profit margin and asset
T/O
equity multiplier - Correct Answer -invested capita (assets)/equity. measure of
financial leverage
exposure - Correct Answer -netting a procedure used by multinational firms to
reduce costs of hedging transaction exposure. relies on principle of netting inflows
and outflows of currencies
financial leverage - Correct Answer -portion of a firm's assets financed with debt
instead of equity
forfaiting - Correct Answer -method of financing the purchase of capital goods by
east bloc countries. forfaiter coordinates the activities of exporters, importers, and
financial institutions
Updated Questions and Verified
Answers (2026/2027) | Graded A+ |
100% Success
what 3 decision criteria does NPV meet? - Correct Answer -1. It adjusts for the
time-value of money2. It adjusts for risk3. It provides information on whether a
project will deliver value for a firm
internal rate of return (IRR) - Correct Answer -IRR shows the "break-even" interest
rate - is the project a better proposition than the outside opportunity cost? If IRR
is greater than the required return, accept the project.
IRR can be unreliable with... - Correct Answer -1. Non-conventional cash flows
(can generate two IRR's)2. Mutually exclusive projects
why is FCF superior to NY? - Correct Answer -(1) NY does not recognize if you've
bought or sold assets(2) NY recognizes depreciation, which is a non-cash expense
,5 uses of FCF - Correct Answer -(1) Pay interest on debt(2) Pay principal(3) Buy
back stock(4) Pay dividends(5) Invest in non-operating assets
economic darwinism - Correct Answer --don't fix something unless it's broken-if
firms stay with an operating procedure for a long time, then it is likely that it the
benefits are excess to the cost- successful firms will be imitated- helps identify the
cost and benefits of alternative internal accounting systems
accounting exposure - Correct Answer -variability in the firm's reported values for
NI and net worth that results from changes in exchange rates
amortized loan - Correct Answer -loan that's paid off in periodic equal installments
and includes varying portions of principal and interest during its term
arbitrage-pricing model (APM) - Correct Answer -theory that relates stock returns
and risk. maintains that security returns vary from their expected amounts when
there are unanticipated changes in basic economic forces (unexpected changes in
industrial production, inflation rates, terms structure of interest rates, and diff
between interest rates of high and low risk bonds)
,bailment - Correct Answer -exists when possession of property belonging to one
person is delivered to another person who intends to assume custody or control
over the property and who expressly or implicitly promises to return it to the
owner or dispose of it as directed by the owner
book value - Correct Answer -depreciated value of a co's assets (OG cost - AD) less
O/S liabilities
capital asset pricing model (CAPM) - Correct Answer -formula according to which a
security's expected return = risk-free rate + risk premium. model shows the
relationship between an investment's expected (or required) return and its beta.
can be used to estimate cost of equity of a firm or project
coefficient of determination - Correct Answer -proportion of the total variation in
the dependent variable that's explained by the regression equation
coefficient of variation - Correct Answer -measure of relative dispersion of a
probability distribution. risk per unit of return. math defined as std
deviation/expected value
, direct quote - Correct Answer -value of a foreign currency in units of the domestic
currency
dupont formula - Correct Answer -breakdown of ROI into profit margin and asset
T/O
equity multiplier - Correct Answer -invested capita (assets)/equity. measure of
financial leverage
exposure - Correct Answer -netting a procedure used by multinational firms to
reduce costs of hedging transaction exposure. relies on principle of netting inflows
and outflows of currencies
financial leverage - Correct Answer -portion of a firm's assets financed with debt
instead of equity
forfaiting - Correct Answer -method of financing the purchase of capital goods by
east bloc countries. forfaiter coordinates the activities of exporters, importers, and
financial institutions
