Conceptual Actual Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update
1. Which valuation method does not fall under the term discounted cash flow
method?
a) Discounted Dividend
b) Mainstream Valuation
c) Present Value Methods
d) Excess Return Models - ANSWER b)
2. Which of the following are internal corporate pieces of information beyond
financials?
A) Partnership with peers
B) Business model (ROE, growth, sustainable growth)
C) Financial Strength (capital structure, financial slack, FCF)
D) Board of Directors disclosures
a) B & C
b) A & C
c) B & D
d) A & B - ANSWER a)
3. Which is the correct question regarding corporate governance?
a) Are the SDGs connected with the remuneration of the CEO?
b) Does the function of Sustainability Manager exist?
, c) What is the ratio of men to women on the Board of Directors?
d) Is the company understanding and managing well the risks, including
the environmental and social risks and opportunities that they face? -
ANSWER d)
4. In order to get ESG into the valuation you do not need to consider...
a) Financial strength
b) A company's financial statements
c) Sustainability of the business model
d) Competitors' dividend - ANSWER d)
5. In order to get ESG into the fundamental analysis, you need to analyze and
measure...
A) The ability of an investment to generate cash
B) The ability of a company to understand ESG risks
C) The ability of an investment to create value with a
manageable risk profile
D) The ability of an investment to manage ESG risks
a) A & C
b) A & D
c) C & D
d) B & D - ANSWER a)
6. Which of the following variables are affected by ESG factors?
A) Profit & loss account
B) Balance sheet
C) Cash flow statement
, a) A and B but not C
b) A and C but not B
c) A and B and C - ANSWER c)
7. Is it necessary to know the corporate terminal value to estimate the value
of a company?
a) No
b) Only for the automotive sector
c) Yes
d) Only for the oil and gas sector - ANSWER c)
8. Which of the following is part of the cash flow statement?
a) Value of the liabilities and value of the assets
b) Market share
c) Capex - ANSWER c)
9. Once the financial impact is qualified, do the investors need the extent on
financial estimates to be quantified?
a) Yes, a stakeholder's engagement activity must have been carried out
b) Yes, double materiality has to be assessed
c) Yes, information on ESG factors must be included
d) Yes, the SDGs of the 2030 UN Agenda must be evaluated - ANSWER
c)
10.Which ESG factors have NO impact on net income?
A) Litigation risks
B) GHG emissions