80 Free CFA Level 1 Practice Exam Questions

80 Free CFA Level 1 Practice Exam Questions includes core concepts illustrated specifically and accessibly, that helps you so much to level up your ability. A variety of exam practice questions aid you in attaining the basic knowledge from the curriculum and polish up skills for the upcoming CFA level 1 exam. Finish all the following questions to know your weakness and strength and don’t forget to leave your ideas in the comment below!
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When each existing share is divided into multiple shares;No change in owners wealth;Share price drops accordingly; Historically, stocks rise after a split because it is seen as a positive sign

• Stock Dividend
• Discount Basis
• Stock Split
• Project Beta

Prevents shareholders from attending all the meetings and therefore exercising their full voting rights

• Require Shareholder Attendance to Vote Hold Their Meetings on the Same Day but in Different Locations
• Approaches to Calculating Cost of Equity
• Selecting an External Auditor
• Criteria for Capital Budgeting Method

Where the cost of one of the WACC components changes;= Amount of Capital at which the Component's Cost Changes/Weight of the Component in Capital Structure

• Break Point
• NPV Profile
• Poison Pill
• Beta

The set of internal controls, processes and procedures by which firms are managed and defines the rights, roles and responsibilities of management

• Declaration Date
• Corporate Governance
• Total Leverage
• CAPM Approach

= (Percent Change in EBIT)/(Percent Change in Sales)= [Quantity of Units Sold (Price per Unit - Variable Cost)] /[Quantity of Units Sold (Price per Unit - Variable Cost) - Fixed Cost] = (Sales - Total Variable Costs) / (Sales - Total Variable Cost - Fixed Costs]

• Degree of Operating Leverage
• Operating Cash Cycle
• Role of Nominations Committee
• Degree of Financial Leverage

Accelerate cash outflows

• Liquidating Dividend
• Liquidity Pull
• Poison Pill
• Dividend Dates

*Involves large transactions*Same principles apply to most corporate decision making *Objective way to maximize shareholder value

• Uncommitted Line of Credit
• Why Capital Budgeting is Important
• Criteria for Capital Budgeting Method
• Committed Line of Credit

Looking at a publicly traded security of a company involved directly in the business the project is engaged in;Company's beta is also a product of its capital structure and must be adjusted accordingly to fit the need of the project;Delever the comparable beta and relever for the project in question

• Takeover Defenses
• Selection Methods
• Beta Pure Play Method
• Regular Dividend

~Beta uses historical data and sensitive to the length of time and frequency of data~Affected by which index is chosen to represent the market return~Betas are believed to revert to 1 after time and the estimate may need to be adjusted accordingly ~Betas of smaller firms may need to be adjusted upward to reflect risk inherent in small firms not captured by Beta calculation

• Country Risk Premium
• Liquidity Pull
• Problems with Pure Play
• Profitability Index

= Fixed Operating Costs/(Price - Variable Cost per Unit)

• Flotation Costs
• Incremental Cash Flow
• Operating Break Even Cost of Sales
• Break Even Quantity of Sales