21-12-2012, 06:15 PM
Sample Question Paper for NCFM - Financial Modeling Certification
Sample Question Paper.pdf (Size: 121.21 KB / Downloads: 51)
1. Which of the following statements is most accurate?
[1 Marks]
a) Law of supply says that demand of product falls as price of substitute decreases
b) Law of supply says that demand of product rises as price of substitute decreases
c) Law of demand says that demand of product falls as price of product falls
d) Law of demand says that demand of product rises as price of product falls
e) Not Attempted
2. Following are the details of an IT Company's revenue for the past 3 years - Year-1 = 11000, Year-2 = 13500,
Year-3=16000, million INR
35% of the revenue comes from onsite and remaining from offshore
The number of employees working onsite is 15% of the total employee strength every
year
The employee count for the company each year is 5000, 6000 and
7000
The onsite utilization is 85%, 85% and 85% in the respective
years
The offshore utilization has been 2000 bps lower than
onsite
Assuming that the onsite and offshore billing rates per hour increase at 2% per year, project the revenues for the next 3
years
Assume 250 working days per year and 8 hours of working for every Day
Company expects to add 500 employees every year.
15% of the total employees would be onsite, others offshore
Utilization rates are expected to remain constant, for both onsite and offshore as that in year-
3. Which of the following is a correct representation of formula in excel?
[1 Marks]
a) =sum(AB)
b) =sum(A1;B1)
c) =sum(A1:B1)
d) =sum(A1B1)
e) Not Attempted
4. A company has a D/E of 1.25. As per the balance sheet, the outstanding debt is Rs.10000 bearing an interest rate of 10%
The cash and cash equivalent is Rs.1250
The net income of the company is Rs.1600 and the tax rate is
30%
The depreciation and amortization amount is Rs.500.
Calculate the EV/EBITDA of the company.
Consider the book value of equity same as the market value of equity of the
company.
[5 Marks]
a) 5.48
b) 4.42
c) 3.49
d) 2.48
e) Not Attempted
5. Which of the following is most accurate statement?
[1 Marks]
a) Demand Curve - Curve Sloping downward to right
b) Demand Curve - Curve Sloping upward to right
c) Demand Curve - A humped curve
d) None of the above
e) Not Attempted
6. Calculate the ROE of the company with the use of following information: EBIT = Rs.4000, Tax rate = 35%,
Interest rate =15%, Outstanding debt = Rs.10000, Equity value = Rs.20000.
[1 Marks]
a) 15%
b) 14%
c) 10%
d) 8%
e) Not Attempted
7. Which of the following is the most accurate statement regarding a Financial Model:
[1 Marks]
a) Excel containing historical financial data
b) Basic calculation tool
c) A decision making tool
d) Excel spreadsheet with numbers
e) Not Attempted