Managment Engineer - Investment banking

Full exam

2.Silver Co's balance sheet reports the following information: trade receivables 80, inventory 50, bank loans 250, trade payables 70, tangible fixed assets 500, employee severity 100, cash 20. Which of the following options represents the net financial position (NFP) of the company?Required to answer. Single choice. (0/3 Points) 300 - 230 230 250 Correct answers: 230 3.Silver Co's balance sheet reports the following information: trade receivables 80, inventory 50, bank loans 250, trade payables 70, tangible fixed assets 500, employee severity 100, cash 20. Which of the following options represents the capital employed (CE)?Required to answer. Single choice. (0/3 Points) 660 460 560 650 Correct answers: 460 4.Whisky Srl needs to calculate its β levered. Comparables show a β levered of 1.26, with a level of financial leverage (D/E) of 0.8 and average tax rate of 40% (same numbers for each comparable). Assuming Whisky to have a D/E ratio of 0.6 and tax rate of 33%, which of the following would represent its β levered?Required to answer. Single choice. (3/3 Points) 1.87 1.19 1.77 2.11 Correct answers: 1.19 5.Comp1, listed on the Stock Exchange, operates in the automotive industry, a business particularly cyclical, and is innovation leader.Required to answer. Single choice. (3/3 Points) Comp1 has a beta lower than 1 Comp1 has a negative beta Comp1 has a beta equal to 1 Comp1 has a beta greater than 1 Correct answers: Comp1 has a beta greater than 1 6.Alpha has presented the following budget for FY21: EBIT €3.6m, D&A €1.6m, Divestitures €0.9m, increase in inventory €0.2m, increase in trade receivables €0.8m, flat trade payables vs 2020, financial expenses €1m. Assuming tax rate 50%, what is the free cash flow to firm of Alpha?Required to answer. Single choice. (0/3 Points) €4.0m €3.5m €3.3m €1.5m Correct answers: €3.3m 7.GOLD, a tier 1 investment bank, has got a mandate for a fairness opinion on the valuation of company FOX. FOX is a holding of participations operating in two very different businesses: real estate and consulting. Which of the following valuation approaches would be best for evaluating such a business?Required to answer. Single choice. (0/3 Points) Asset based (Bus1 and Bus2) SOTP (sum of the parts) DCF (Bus1 and Bus2) Asset based (Bus1) + multiples (Bus2) Correct answers: SOTP (sum of the parts)