Principles of Finance practice by topic

• valuation — 118 free questions
• cost-of-capital-structure — 83 free questions
• financial-statements-markets-wc — 82 free questions
• time-value-of-money — 73 free questions
• risk-return-portfolio — 55 free questions
• capital-budgeting — 54 free questions

How do I learn the principles of finance?

Start with time value of money until discounting is reflexive, then build to NPV/IRR, WACC, and capital structure. KomFi teaches by repetition: 2,086 practice questions with full workings, video lectures, flashcards, and a glossary — drilled in 10-question reps.

What are the core principles of finance?

Money has time value; risk demands return; diversification is the only free lunch; markets price information; incentives drive behavior. Every interview answer and exam question is a costume on one of these five.

How do I prepare for a finance fundamentals interview?

Be fast and exact on TVM, WACC, NPV vs IRR, and the three statements. Drill until the mechanics are automatic so interview pressure lands on judgment, not arithmetic.

Free Principles of Finance practice questions

1. If the required rate of return is 10%, what is the Net Present Value (NPV)?
2. Calculate the 'Profitability Index' for a project with an initial cost of 200,000 and a present value of futur
3. According to the Net Present Value criterion, which project should be chosen?
4. What is the Profitability Index (PI) and what does it indicate for capital rationing?
5. Which type of 'real option' is being exercised when a pharmaceutical company decides to build a full-scale man
6. What is the Payback Period of the project?
7. A firm has FCFF of $100M, interest expense of $20M, a tax rate of 25%, and net new borrowing of $10M. Calculat
8. If the cost of capital is 10%, what is the Net Present Value (NPV) of the project?
9. What is the project's Profitability Index (PI) at a 10% discount rate?
10. If the cost of capital is 10%, what is the project's Net Present Value (NPV)?
11. If the cost of capital is 10%, how do the Internal Rate of Return (IRR) and the Modified Internal Rate of Retu
12. An investor executes a 'bull call spread' by buying a 50-str… — What is the maximum possible profit for this s
13. If the cost of capital is 10%, what is the project's Profitability Index (PI)?
14. If the WACC is 10%, what is the NPV of the project, accounting for the depreciation tax shield?
15. In the context of capital budgeting, if two projects are mutually exclusive and have different lives, which me
16. If the exit multiple is also 10x, what is the investor's IRR?
17. Calculate the Enterprise Value (EV) for a company with the following data: Market Capitalization of $1,500M, T
18. What is the Multiple of Invested Capital (MOIC)?
19. According to standard financial theory, which project should be accepted?
20. A financial sponsor is evaluating a Leveraged Buyout (LBO) of a manufacturing firm. The primary mechanism thro
21. Which of the following signals would most likely lead to a 'low' score (indicating potential financial manipul
22. If the project's NPV is positive, what can we conclude about the project's 'Profitability Index' (PI)?
23. If the tax rate is 25%, what is the net initial investment for this capital budgeting decision?
24. If high demand occurs, the firm can spend another 15M at the start of Year 2 to expand, adding 6M in annual CF
25. Given CFO = $500M, Interest Expense = $80M, Tax Rate = 25%, and Capital Expenditures = $200M, what is the FCFF