Practice Set - 2 | Practice Set | NISM Series XV: Research Analyst Certification Examination

Question 1

Which scenario results in highest valuation?

Question 2

Which company is most suitable for EV/EBITDA valuation?

Question 3

Which is the key idea behind valuation?

Question 4

Which valuation method is best during liquidation scenario?

Question 5

Which assumption is critical in terminal value calculation?

Question 6

A company with stable earnings and low growth is best valued using:

Question 7

What happens if required rate of return exceeds growth rate significantly?

Question 8

Which valuation approach is forward-looking?

Question 9

Which of the following reduces intrinsic value?

Question 10

If market price is above intrinsic value, stock is:

Question 11

Which multiple is least useful for companies with negative earnings?

Question 12

If expected future cash flows increase while discount rate remains constant, what happens to valuation?

Question 13

Which model is most complex?

Question 14

Which valuation model assumes perpetual life of a company?

Question 15

Which multiple is preferred when EBITDA is negative?

Question 16

Which situation results in undervaluation opportunity?

Question 17

Which variable is used to discount FCFE?

Question 18

A lower growth rate assumption will result in:

Question 19

If a company has high leverage, which metric is preferred?

Question 20

Which valuation is least dependent on future projections?

Question 21

Which factor reduces margin of safety?

Question 22

Which valuation method focuses on replacement cost of assets?

Question 23

Which of the following increases enterprise value?

Question 24

Which valuation input is most subjective?

Question 25

Which ratio compares enterprise value with operating performance?

Question 26

Which variable directly affects cost of equity?

Question 27

Which variable is used to discount FCFF?

Question 28

Which is a limitation of DCF?

Question 29

Which valuation approach relies most on market comparisons?

Question 30

Which of the following is NOT part of DCF inputs?

Question 31

If growth rate exceeds discount rate in DCF, valuation becomes:

Question 32

If discount rate increases sharply, intrinsic value will:

Question 33

Which is most appropriate for valuing banks?

Question 34

Which factor directly increases P/E ratio?

Question 35

Which valuation approach is easiest to apply?

Question 36

Which metric ignores capital structure?

Question 37

Which metric is most affected by capital structure changes?

Question 38

Which company is hardest to value using DCF?

Question 39

Practice Set - 2