29 Free CFA Level 2 Practice Exam on Corporate Finance

Be confident to win in the next CFA exam with 29 Free CFA Level 2 Practice Exam on Corporate Finance. Significant concepts on this topic are illustrated specifically and accessibly in this free CFA mock exam online. Those practice questions with clear answers connect the concepts with each other in an explicit way as possible in order to easily follow. It’s able for you to attain the basic knowledge from the curriculum and polish up skills for the upcoming CFA level 2 exam. You need to finish all the following questions to know where you’re standing in the learning process and don’t forget to leave your ideas in the comment below!
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managers cant change company values by using more or less debt

• MM without tax states..?
• expected DPS
• MM prop 1 states...?
• pre-offer defense

poison, put, staggered, restrictive voting , parachuteP-P-P-S-R : people pay put sex right

• pre-offer defense
• value of equity
• economic income
• expected DPS

EP = NOPAT - $WACC = EBIT (1-tax) - WACC xCapital

• economic profit
• value of equity
• expected DPS
• economic income

cap ro ro da voi cap re dero+ ro (1-t)d/e = re + rd(1-t)d/e

• value of equity
• equation of all equity company
• Equivalent Annual Annuity (EAA)
• comparable company

first, calculate NPV, then EAA = , in which NPV = PV, key in N, I/Y and FV = 0

• Equivalent Annual Annuity (EAA)
• equation of all equity company
• initial outlay
• value of equity

value = ebit (1-t)/ wacc

• MM equation on value of company and WACC
• equation of Value of company before and after leverage
• comparable company
• equation of all equity company

E and EAU 1- Eliminate2- ensure asset use

• comparable transaction
• attribute of corporate governance system
• equation of all equity company
• objective of corporate governance system

D-D-M-I-F-T (Don't do mad if think) <--> ATTRIBUTE1-Delinear (D)2-Define manager (DM)3-Identifiable / measurable (I)4-Fairness (F)5-Transparency (T)

• comparable transaction
• objective of corporate governance system
• pre-offer defense
• attribute of corporate governance system

= NPV of the investment project or sum of EP discount by WACC in every year

• MVA
• expected DPS
• PI
• AAR

= avg net income/ avg book value

• AAR
• PI
• MVA
• expected DPS

FCinv + NWCinv- Salvage at time 0 + tax (Salvage at 0 - book at 0)

• comparable company
• equity carve out:
• AAR
• initial outlay

shift cash flow to earlier years so earlier years operating income after tax and terminal cf both lower but NPV is higher

• objective of corporate governance system
• impact of switching from straight line to accelerate depr
• MM without tax states..?
• attribute of corporate governance system