Full exam for Accounting, Finance & Control in the Management Engineering degree programme at Politecnico di Milano. The document covers: ACCOUNTING, FINANCE & CONTROL MULTIPLE CHOICE TEST 5th Call | September 8th, 2026 Please state in CAPITAL LETTERS your Name and Surname in the following spaces NAME SURNAME STUDENT ID Available Time: 60 minutes In taking multiple-choice tests, you want to keep in mind the basics
Full exam for Accounting, Finance & Control in the Management Engineering degree programme at Politecnico di Milano. The document covers: ACCOUNTING, FINANCE & CONTROL MULTIPLE CHOICE TEST 5th Call | September 8th, 2026 Please state in CAPITAL LETTERS your Name and Surname in the following spaces NAME SURNAME STUDENT ID Available Time: 60 minutes In taking multiple-choice tests, you want to keep in mind the basics
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ACCOUNTING, FINANCE & CONTROL MULTIPLE CHOICE TEST 5th Call | September 8th, 2026 Please state in CAPITAL LETTERS your Name and Surname in the following spaces NAME SURNAME STUDENT ID Available Time: 60 minutes In taking multiple-choice tests, you want to keep in mind the basics for this kind of test! Read each question carefully and have a systematic approach to the whole exam. In the following, two very well-known strategies for approaching multiple-choice questions are briefly reminded. Choose the Best Response: there is only one very correct answer per question! Many options in a multiple-choice answer may have some truth to them. You want to identify the best response from the good responses. If you have eliminated other answer options and have narrowed it down to two, and both seem true, try to pick the answer option that is in some way better than one that is just good. Be sure to read the question once again when selecting the best answer. Mark only “Sure Things” first and make 3 “Passes” through the test. Go through the test first and answer all the questions for which the answers come quickly. For the questions that seem more difficult, eliminate as many options as you can. This will give you a head start for your second pass. You may come across another question that gives you a clue about the one that stumped you. On your second pass, spend extra time to figure out the “best” of the rest of the answer options. On your third pass, take an educated guess at the ones that are still elusive because any answer is better than no answer. There are no penalties for wrong answers. In the following questions: • Consider that 1k€ = 1 thousand euros and 1M€ = 1 million euros. • The international convention for decimal and thousand separators is used – i.e., the comma…
SOLUTION The payout ratio (t) can be defined as: DIVIDEND(t)/NET PROFIT(t-1). Since ROE * (1-PR) is given, we first need to calculate the net profit for both 2024 and 2025. Once the payout ratio has been determined, the total dividends paid in 2025 can be calculated. To calculate revenues, we know that: Total Assets (2025) = Financial Liabilities + Non-financial Liabilities + Equity = 970,000 k€ Total Assets (2024) = Financial Liabilities + Non-financial Liabilities + Equity = 855,000 k€ Revenues (2025) = ATR * Assets = 970,000 k€ Revenues (2024) = ATR * Assets = 812,250 k€ Then, using DPO formula we know that: DPO = (Payable/Purchases of raw materials) * 365 And: Purchases of raw materials (2025) = (Payable/DPO) * 365= 346,120.6897 k€ à346,120.69 k€ Purchases of raw materials (2024) = (Payable/DPO) * 365= 316,333.3333 k€ à316,333.33 k€ NP (2025) = (Revenues + Delta Inventory finished goods (f-i) + Delta Inventory raw materials (f-i) – Purchases of raw materials– Personnel – D&A – Other operating costs– Net financial costs) * (1- tc) = 108,926.5515 €k = 108,926.55 k€ NP (2024) = (Revenues + Delta Inventory finished goods (f-i) + Delta Inventory raw materials (f-i) – Purchases of raw materials – Personnel – D&A – Other operating costs – Net financial costs) * (1- tc) = 81,780.8355 = 81,780.84 k€ Finally, ROE (2025) = NP (2025)/Equity (2025) = 0.155609357143 à 15.56% PR = 1-0.075/0.1556=0.517994 à 51.80% PR = Dividends / NP (2024) Dividends = PR * NP (2024) = 0.518*81,780.84=42,362.475 k€à 42,362.48 k€ Then, answer A is correct Answers B is wrong, because the dividends were computed using 2025 NP. PR = Dividends / NP (2025) Dividends = PR*NP (2025) = 0.518*108,926.55= 56,423.9529à 56,423.95 k€ Answer C is wrong, because DPO was used to calculate COGS, and all subsequent…
ΔDebt = Debt (2025) – Debt (2024) = 3,900 – 2,700 = 1,200 k€ FCFE calculation EBIT 12,500 – Taxes on EBIT (3,750) + D&A 2,200 – Net CAPEX (3,800) – ΔNWC (900) = FCFF 6,250 – Net Financial Expenses × (1 – tax) (462) + ΔDebt 1,200 + ΔEquity 0 = FCFE 6,988 A. Correct. B. Wrong because ΔNWC is computed by summing payables instead of subtracting. C. Wrong because Financial Expenses are used instead of Net Financial Expenses. D. Wrong because A is correct QUESTION 2B - 3 points In addition to the previous information, you also know: • The interest of the following 10-Y Government bonds: Germany 0.78%, France 1.16%, Italy 2.45%, US 0.3%. • The market return of the following indexes: EUROSTOXX 12.50%, CAC 40: 5.50%, FTSE MIB: 15.20% Dow Jones: 13.40% • The Beta unlevered of the following industry sectors: solar energy industry: 0.72, Oil and gas: 0.31, Energy distribution: 0.33. • The number of shares is equal to 1,000 • The market price per share: 9.6 k€/share • The book value per share: 16.32 k€/share Based on the available data, calculate the WACC of SolarGrid S.p.A. in 2026. Choose the correct answer (in each calculation, please round to the second digital place for numbers and the fourth decimal place for percentages. E.g., 10.4174%: keep 10.42% and not just 10%): A. 10.14% B. 10.87% C. 9.92% D. None of the other answers is correct
Solution: First, we must compute the FCFE of the comparable companies: H I J K L FCFE (M€) 72.50 106.00 90.80 116.25 105.00 Now we can proceed to the computation of the multiple: H I J K L Multiple value 5.50 5.70 6.20 5.80 6.10 So, the average value is 5.86. The Equity value of H&P is then: 5.86*78 = 457.08 M€ To compute the value of EV, we need the Net Financial Position (i.e., the Net Financial Debt) of H&P: NFP = 110 – 25.50 = 84.50 M€ So EV = E + NFP = 457.08 + 84.50 = 541.58 M€ Wrong solutions: B: In the computation of FCFE, financial income and expenses do not include the tax shield effect C: Wrong sign in the computation of the Enterprise Value of H&P (starting from the Equity Value) QUESTION 4 - 2 POINTS A manufacturing company is preparing its annual budget. Senior management wants the budget to support strategic goals, coordinate Departments, motivate managers, and provide a basis for performance evaluation. During the budgeting process, the Sales Department submits an optimistic sales forecast to make the company appear more ambitious. The Production Department then prepares a production budget based on that forecast, while the Purchasing Department uses the production budget to estimate raw material needs. Later, actual sales turn out to be much lower than expected, causing excess inventory and unnecessary purchasing costs. Which statement best explains the main budgeting problem in this situation? A. The budgeting process should begin with the production budget, not the sales budget. B. Budgets should be prepared independently by each Department to avoid bias and interdependencies. C. Budgets are useful only for controlling costs, not for coordinating Departments. D. None of the other answers is correct
B. CORRECT. In the parent’s separate financial statements, subsidiaries may appear only as investments. Group accounting is needed to show the underlying assets, liabilities, revenues, and costs controlled by the group. C. WRONG. Subsidiaries do not lose their legal autonomy when they are consolidated. They remain separate legal entities; consolidation only changes how the group is represented for accounting purposes. D. WRONG. Answer B is CORRECT QUESTION 9 - 2 POINTS Which of the following statements about business valuation is correct? A. Business valuation is conceptually different from financial analysis because it estimates the company’s capacity to generate future cash flows, while financial analysis interprets a company’s performance based on accounting data B. Business valuation mainly relies on certified historical data C. Business valuation is used when a company is listed, while financial analysis applies mainly to not listed companies D. None of the other answers is correct SOLUTION A. CORRECT. Business valuation is forward-looking: it estimates the company’s ability to generate future cash flows. Financial analysis is mainly based on accounting data and past performance. B. WRONG. Business valuation does not rely mainly on certified historical data. Business valuation requires assumptions and estimates about future results. C. WRONG. Business valuation is not limited to listed companies, and financial analysis is not mainly limited to unlisted companies. Both can be applied to listed and unlisted firms. D. A is correct.
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