Hard Principles of Finance Practice Questions
93 free hard-difficulty Principles of Finance questions, drawn live from KomFi's calibrated bank. These are the items that separate top scorers — every one carries a full explanation and trap analysis once you sign in.
- If the WACC is 10%, what is the NPV of the project, accounting for the depreciation tax shield?
- If the continuously compounded risk-free rate is 4% and no dividends are expected, what is the theoretical pri
- Which of the following is a key characteristic of the 'Kyle Model' of informed trading in market microstructur
- Using the Black-Scholes-Merton model, where d_1 = -0.0744, d_2 = -0.2512, N(d_1) = 0.4704, and N(d_2) = 0.4009
- If the market yield suddenly increases by 100 basis points, what is the approximate percentage change in the b
- Using the Treasury Stock Method, what is the firm's diluted share count?
- How is the difference in spreads settled at the start of the contract?
- A firm projects that a merger will generate $100M in annual… — If the firm applies a 10x EBITDA multiple to th
- If the firm targets a new capital structure with a debt-to-equity ratio of 0.80, what will be its new levered
- What is the risk-neutral probability (p) of an upward move?
- In the context of capital budgeting, if two projects are mutually exclusive and have different lives, which me
- Which of the following statements about the 5-year principal strip is true compared to the original coupon bon
- If the market premium is 6%, the SMB premium is 2%, and the HML premium is 4%, what is the expected excess ret
- If the WACC is 8%, what is the total Enterprise Value (EV)?
- If the market risk premium is 6%, the SMB premium is 2%, the HML premium is 3%, and the risk-free rate is 4%
- An investor views a volatility smile in the S&P 500 index op… — This 'skew' most directly contradicts which as
- Using the 5-way DuPont Decomposition, which component reflects the 'Interest Burden'?
- According to put-call parity, what should the arbitrageur do?
- If the risk-free rate is 3%, the market risk premium is 6%, the SMB premium is 2%, and the HML premium is 4%
- What is the bond-equivalent yield (BEY)?
- What is the fair forward price?
- Using the binomial model, what is the current value of the call option?
- An investor calculates the Value at Risk (VaR) for a portfol… — If the daily 1% VaR is $2.5 million, what does
- What is its Tier 1 Capital Ratio, and is it above the Basel III minimum of 6.0%?
- If the target has 10 million shares outstanding, what is the implied equity value per share using the median m
- Using the Fisher equation, what is the exact real required rate of return?
- What is the firm's equity multiplier?
- If the current market yield for similar risk bonds is exactly 6%, what is the current market price of the bond
- Using the Brinson-Fachler decomposition for Quarter 1, calculate the total active return. Benchmark: Equity 70
- A stock is expected to pay a $2.00 dividend next year, and dividends are projected to grow at a constant rate
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