corp — CFA Level I Practice Questions

60 free CFA Level I questions on corp: 18 easy, 27 medium, and 15 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn corp from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

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1. If the shares return 10%, the return on equity (ROE) is:
2. The most reliable method to select the project that maximizes shareholder wealth is:
3. If the discount rate increases to 12%, the NPV will most likely:
4. Which component of the WACC formula is typically the most difficult to estimate with precision?
5. Helion Rail should:
6. If the firm encounters multiple IRRs, the best approach is to rely on:
7. Vesper Foods is evaluating a project that has an initial inv… — This cash flow pattern is classified as:
8. The conflict between the two rankings here is best described as:
9. If the required return is 10%, the Profitability Index (PI) is closest to:
10. If the projects have the same initial outlay, the crossover rate is most sensitive to differences in:
11. Which of the following would cause a project's NPV profile to shift vertically upward (higher NPV at all rates
12. The unlevered cost of equity (r_0) is closest to:
13. If the cost of capital is 10%, what is the project's Profitability Index (PI)?
14. If the discount rate is 10%, the Net Present Value (NPV) is closest to:
15. The MIRR assumes that positive cash flows are reinvested at:
16. The return on equity (R_e) is closest to:
17. A project's NPV profile intercepts the vertical (y) axis at the:
18. In a world with corporate taxes but no financial distress costs, if Helion Rail maintains a positive spread be
19. If the company's beta is 1.2, its WACC is closest to:
20. Vesper Foods finds that at their current WACC, two mutually… — This implies that:
21. If the cost of capital is 8%, Oakridge should choose the project with the:
22. If the cost of equity is 12%, the pre-tax cost of debt is 7%, and the tax rate is 25%, the WACC is closest to:
23. If the required rate of return is 8%, the Profitability Index (PI) of the project is closest to:
24. If the company increases its financial leverage, the cost of equity will:
25. Which of the following sequences best represents the company's preferred order of funding?
26. If the NPV is positive, the IRR must be:
27. If the project has 'conventional cash flows', how many times will the NPV change signs as the discount rate in
28. If there are 3 board seats open and a shareholder owns 1,000 shares, how many votes can they cast for a single
29. A 'Proxy Solicitor' is a firm hired by Northline Timber to:
30. Juniper Health's board is composed of 12 members, 10 of whom have no professional or personal ties to the mana