Practice Quiz

CFP Certified Financial Planner Test Prep - Question List

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21.

Investment manager Liam Lynx decides to make investments across the board, anticipating a sharp increase in the economy. This is called: 

  1. Fundamental analysis
  2. Bottom up approach
  3. Top down approach
  4. Dividend investing
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22.

One share of Caracal Enterprises has a par value of $50, while its market value is $120. The earnings per share (EPS) for Caracal Enterprises is $15. What would be the P/E ratio?

  1. 15
  2. 12
  3. 8
  4. None of the above
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23.

What would be the market value of a company if its annual cash profit is $8 million and its WACC is 10%?

  1. $90 million
  2. $85 million
  3. $80 million
  4. None of the above
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24.

If the compound interest on a company’s irredeemable bonds is 8% and the tax rate is 15%, what would be cost of the bond after tax if the bond's market value is $110.

  1. 4.6%
  2. 5.2%
  3. 3.6%
  4. 4.5%
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25.

Operational cash flow comes into a business through all of the following EXCEPT:

  1. Sale of fixed assets
  2. Sale of inventory
  3. Cash collected from debtors
  4. All of the above are sources of cash flow
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