Corporate Finance case: fund a new line
One case, eleven questions: choose the relevant cash flows, set a hurdle rate from a peer beta, build the project's cash flows and NPV, test its margin of safety, then compare a loan with a share issue on EPS, interest cover and the covenant, and make the call.
45 minutes11 questionsPass mark 70%Counts towards: Corporate Finance
How it works
- The timer starts when you begin and is enforced on our servers. Answers are submitted automatically when time runs out.
- No hints, no checking and no solutions during the attempt. You'll see every answer with an explanation after you submit.
- You can take this assessment up to 3 times a day. Your best passing attempt counts towards your certificate.
- Skills assessed: Capital budgeting decisions, NPV, IRR and project appraisal, Cost of capital, Capital structure and payout.