Bloomberg Assessment: Sample Test Questions
BLOOMBERG ASSESSMENT (BAT)
SAMPLE TEST QUESTIONS
I. Economics
You have just been transferred to Sydney and cover Australia and New Zealand on the sovereign research desk. Australia and New Zealand operate under a free trade agreement. No barriers to trade exist, and both currencies float. In this environment, an increase in expected inflation in New Zealand would most likely cause what effect?
Choose One Answer
o o o
An increase in exports from New Zealand to Australia An increase in imports to New Zealand from Australia An increase in the New Zealand Dollar versus the Australian Dollar A decline in the New Zealand Dollar versus the Australian Dollar
II. Financial Statements Analysis
Pinnacle Entertainment is a gaming company with operations in the United States. As a result of increased competition and weakness in the Missouri market, the company took an impairment charge to write down the value of its three properties in the region. How will this charge be reflected on the cash flow statement?
Choose One Answer
o o o
A use of cash from investing A use of cash from discontinued operations A source of cash from financing A source of cash from operations
© 2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
III. Corporate Valuation
As an investment banking analyst at Deutsche Bank, you are asked to perform a discounted cash flow analysis. Your associate provides you with the following information from the company’s operating model and asks you to calculate the present value of the company’s first five years of unlevered free cash flows assuming a 10% discount rate and a 40% tax rate.
Projections (millions) Fiscal Year (FY) Net Sales EBITDA Depreciation & Amortization Capital Expenditures Net Change in Working Capital FY+1 €300.0 66.0 10.0 7.5 0.0 FY+2 €374.1 84.2 12.5 10.6 0.0 FY+3 €417.7 94.0 15.0 13.5 0.0 FY+4 €466.5 105.0 17.5 16.6 0.0 FY+5 €521.0 117.3 20.0 20.0 0.0
Which of the following is the present value of the company’s free cash
SAMPLE TEST QUESTIONS
I. Economics
You have just been transferred to Sydney and cover Australia and New Zealand on the sovereign research desk. Australia and New Zealand operate under a free trade agreement. No barriers to trade exist, and both currencies float. In this environment, an increase in expected inflation in New Zealand would most likely cause what effect?
Choose One Answer
o o o
An increase in exports from New Zealand to Australia An increase in imports to New Zealand from Australia An increase in the New Zealand Dollar versus the Australian Dollar A decline in the New Zealand Dollar versus the Australian Dollar
II. Financial Statements Analysis
Pinnacle Entertainment is a gaming company with operations in the United States. As a result of increased competition and weakness in the Missouri market, the company took an impairment charge to write down the value of its three properties in the region. How will this charge be reflected on the cash flow statement?
Choose One Answer
o o o
A use of cash from investing A use of cash from discontinued operations A source of cash from financing A source of cash from operations
© 2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
III. Corporate Valuation
As an investment banking analyst at Deutsche Bank, you are asked to perform a discounted cash flow analysis. Your associate provides you with the following information from the company’s operating model and asks you to calculate the present value of the company’s first five years of unlevered free cash flows assuming a 10% discount rate and a 40% tax rate.
Projections (millions) Fiscal Year (FY) Net Sales EBITDA Depreciation & Amortization Capital Expenditures Net Change in Working Capital FY+1 €300.0 66.0 10.0 7.5 0.0 FY+2 €374.1 84.2 12.5 10.6 0.0 FY+3 €417.7 94.0 15.0 13.5 0.0 FY+4 €466.5 105.0 17.5 16.6 0.0 FY+5 €521.0 117.3 20.0 20.0 0.0
Which of the following is the present value of the company’s free cash