equity — CFA Level I Practice Questions

71 free CFA Level I questions on equity: 27 easy, 38 medium, and 6 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn equity from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

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1. Which of the following is *not* typically considered one of the three primary levers of value creation in an L
2. When an analyst at Meridian Pack uses the bootstrap method, what happens to the observations in the original s
3. Meridian Pack must choose between two mutually exclusive projects with different timing of cash flows. The mos
4. If the future value (FV) is entered as 1,000, how must the present value (PV) appear in the BA II Plus to avoi
5. Meridian Pack is considering a project with non-conventional cash flows. If the firm encounters multiple IRRs
6. A Meridian Pack risk report lists 'Tail Sparsity' as a weakn… — This most likely refers to which simulation me
7. Meridian Pack receives 500,000 in interest from its corporat… — Under IFRS, in which two categories could this
8. Vesper Foods is evaluating a project that has an initial investment followed by multiple years of positive cas
9. Meridian Pack paid a $2.00 dividend yesterday. The dividend is expected to grow at 4% per year. If the require
10. Meridian Pack is evaluating a 3-year investment with annual returns of 10%, -5%, and 12%. The geometric mean r
11. Meridian Pack considers a project with an initial outlay of $10,000 and an NPV of $500 at a 10% discount rate.
12. Vesper Foods is a 'small country' in an international trade model. If Vesper Foods' government imposes a tarif
13. Meridian Pack is considering a project with an initial outlay of $500,000 and expected cash inflows of 150,000
14. Oakridge Capital and Meridian Pack are duopolists. The Nash equilibrium occurs at (Low Price, Low Price) with
15. Meridian Pack issues a three-year annual-pay bond with a 5.0% coupon. The current spot rates for one, two, and
16. If the cost of capital is 10%, what is the project's Profitability Index (PI)?
17. Helion Rail is projected to have a dividend payout ratio of 45%, a required return of 11%, and a sustainable g
18. Oakridge Capital is comparing two firms with identical required returns and growth rates. If Firm A has a high
19. A stock pays a dividend of $2.00 today (D_0). Dividends are expected to grow at a constant rate of 5% forever.
20. A price-weighted index consists of three stocks: Oakridge Capital ($100), Meridian Pack ($20), and Vesper Food
21. An analyst at Meridian Pack is using the indirect method to calculate Cash Flow from Operations (CFO). If the
22. Under IFRS, Meridian Pack's investment in a building held solely to earn rentals should be classified as inves
23. What is the intrinsic value of the stock?
24. Under IFRS, how much revenue should be allocated to the machine?
25. Vesper Foods issues 1-for-4 rights issue. The current market price (cum-rights) is $50 and the subscription pr
26. Meridian Pack notes EUR/GBP = 1.1500 and USD/GBP = 1.2500. The USD/EUR cross-rate is:
27. If the justified leading P/E multiple is 12.0x, what is the justified trailing P/E multiple?
28. When the required return r increases, all else equal, the justified P/E multiple will:
29. Meridian Pack (LIFO) has a current ratio of 1.5. Upon conversion to FIFO in an inflationary environment, the r
30. Meridian Pack and Helion Rail are duopolists. If they move from a Nash equilibrium to a successful collusive a