Practise until it clicks.

A bank holds ৳8,00,000 of loans earning 9% funded by ৳7,20,000 of deposits costing 4%. What is net interest income?

A portfolio of ৳10,00,000 has a 3% probability of default and a 60% loss given default. What is the expected loss?

Net income is ৳17,400 and equity is ৳80,000. What is return on equity, in percent?

Which change lowers a bank's net interest margin, all else equal?

A loan earns ৳1,800, expected loss is ৳500, and servicing costs ৳300. What is the contribution per loan?

Fixed platform costs are ৳25,00,000 a month and contribution per loan is ৳1,000. How many loans are needed to break even each month?

A platform processes ৳5,00,000,000 at a 0.35% merchant rate and incurs ৳10,00,000 of transaction cost. What is the net monthly revenue?

Why is fraud more dangerous in instant payments than in card payments?

An asset costs ৳100 today and the one-year rate is 8%. Ignoring storage, what is the no-arbitrage forward price?

A call has a strike of ৳600 and a premium of ৳25. The underlying finishes at ৳680. What is the net profit per unit?

A farmer sells futures on 1,000 tonnes at ৳32,000. The spot price at harvest is ৳29,000. What are total proceeds, including the futures gain?

Which best describes the difference between a future and a forward?

Rise Bakery sells each box for ৳60 with a variable cost of ৳24. What is the contribution margin per box?

With fixed costs of ৳120,000 and a contribution margin of ৳36, what is the break-even volume in boxes? Round to two decimals.

At 5,000 boxes, what is the monthly operating profit?

Which single change lowers the break-even volume?

A 2-year bond has a ৳1,000 face value and a 10% coupon, and the market yield is 10%. What is its price?

The same 2-year, 10% coupon bond now yields 12%. What is its price? Round to two decimals.

Using the ৳966.20 price and the ৳100 annual coupon, what is the current yield? Answer as a percentage, rounded to two decimals.

Rates are expected to fall. Which bond should gain the most in price?

Current assets are ৳420,000 and current liabilities are ৳260,000. What is the current ratio? Round to two decimals.

Net income is ৳90,000 and shareholders' equity is ৳600,000. What is ROE as a percentage? Round to one decimal.

Which ratio best measures how much a business relies on borrowing?

The spot rate is 118 taka per dollar, the taka rate is 9%, and the dollar rate is 4%. What is the one-year parity forward rate?

Home inflation is 7% and foreign inflation is 3%. From a spot rate of 118, what spot rate does relative purchasing power parity suggest after one year?

You convert ৳1,00,000 at a spot rate of 118 taka per dollar. How many dollars do you receive, to two decimals?

Which parity links spot rates, forward rates, and interest rates?

Revenue is ৳100,000,000 and the model grows it 12%. What is the forecast revenue?

Using the forecast revenue of ৳112,000,000, a 40% gross margin, opex of 25% of revenue, interest of ৳3,600,000, and a 25% tax rate, what is net income?

A model's balance-check row shows 1,240 instead of 0. What does that tell you?

The risk-free rate is 5%, beta is 1.2, and the expected market return is 11%. What is the cost of equity?

Pre-tax cost of debt is 8% and the tax rate is 25%. What is the after-tax cost of debt?

With 60% equity at a cost of 12.2% and 40% debt at an after-tax cost of 6%, what is WACC?

A division is clearly riskier than the group average. Which discount rate should its project use?

A peer trades at 7.5 times EBITDA and the target earns ৳40,00,000 of EBITDA. What is the enterprise value?

The enterprise value is ৳3,00,00,000 and net debt is ৳80,00,000. What is the equity value?

Free cash flow next year is ৳25,00,000, the cost of capital is 12%, and growth is 4%. What is the value using the perpetuity growth formula?

Which multiple is least affected by differences in capital structure?

Equity is worth ৳2,32,50,000 across 1,00,000 shares. What is the value per share?

A bond has a modified duration of 5.2 years. Roughly what percentage price change follows a rise in yield of one percentage point? Include the sign.

৳1,000 face value, 6% annual coupon, ten years to maturity, priced at a 6% yield. What is the modified duration in years, to two decimals?

Two bonds have identical yields. Which falls most in price if the yield rises by one percentage point?

A share just paid a dividend of ৳32 and dividends grow at 6% a year. What is next year's dividend, D₁?

With D₁ of ৳33.92, a required return of 13%, and growth of 6%, what is the value per share? Round to two decimals.

If the shares trade at ৳500 while D₁ is ৳33.92 and growth is 6%, what required return does the price imply? Answer as a percentage, rounded to two decimals.

Which company does the Gordon growth model fit best?

Rate-sensitive assets are ৳500 million and rate-sensitive liabilities are ৳620 million. If rates rise by 1 percentage point, what is the change in net interest income, in ৳ million?

A position is worth ৳10,00,000 with a daily standard deviation of 1.6%. Using a 95% multiplier of 1.645, what is the one-day value at risk?

High-quality liquid assets are ৳6,00,000 and stressed net outflows over 30 days are ৳5,00,000. What is the liquidity coverage ratio, in percent?

Which statement about value at risk is correct?

At an 8% annual rate, what is ৳10,000 worth after 2 years? Round to the nearest taka.

What is the present value of ৳5,000 received in 3 years at a 6% annual rate? Round to two decimals.

Which change makes a future cash flow worth less today, holding the amount fixed?

Two assets are held in equal weights. Each has a volatility of 20% and their correlation is 0.3. What is the portfolio volatility, in percent, to one decimal place?

An asset's covariance with the market is 0.045 and the market's variance is 0.02. What is its beta?

Which component of risk does the market reward?

Contribution is ৳1,845,000 and EBIT is ৳1,065,000. What is the degree of operating leverage? Round to two decimals.

EBIT is ৳1,065,000 and interest is ৳313,500. What is the degree of financial leverage? Round to two decimals.

Profit before tax is ৳751,500, the tax rate is 25%, and there are 500,000 shares. What is earnings per share? Round to two decimals.

A firm with high combined leverage expects a sales downturn. What does the measurement warn?

There is a 15% chance of a ৳1,20,00,000 penalty. What is the expected fine?

The expected fine of ৳18,00,000 lands in two years. At a 10% discount rate, what is its present value?

Which situation is a conflict of interest?

You find a material error in a report due for release. What is the correct first step?

An investment returns 20% with probability 0.5 and 0% with probability 0.5. What is the expected return as a percentage?

A bond returns 12% while inflation is 4%. Using the Fisher relationship, what is the real return as a percentage? Round to two decimals.

Diversification mainly removes which kind of risk?

Current assets are ৳420,000 and current liabilities are ৳260,000. What is net working capital?

Inventory days are 50, receivable days are 50, and payable days are 30. What is the cash conversion cycle in days?

Which action shortens the cash conversion cycle?

What does ৳1,000,000 become after 20 years at 9% a year, compounded annually? Round to the nearest taka.

What does ৳500,000 become after 10 years at 10% a year, compounded annually? Round to the nearest taka.

A project has already spent ৳2,000,000 and needs another ৳500,000 to finish, after which it will return ৳400,000. What should the decision turn on?

Fixed costs are ৳90,000, price is ৳180, and variable cost is ৳70. What is the contribution margin per unit?

Using the same figures, what is the break-even number of orders? Round to two decimals.

At 1,200 orders, with a ৳110 contribution margin and ৳90,000 fixed costs, what is the monthly profit?

Which change lowers the break-even volume?

A project costs ৳10,000 and returns ৳6,000 at the end of each of the next two years. At 10%, what is the NPV? Round to two decimals.

A project costs ৳8,000 and returns ৳5,000 at each year-end for two years. At 10%, what is the NPV? Round to two decimals.

For a project with positive future cash flows, what does a higher discount rate do to NPV?

Using simple interest, what does ৳10,000 grow to after 3 years at 8%?

Using compound interest, what does ৳10,000 grow to after 3 years at 8%? Round to two decimals.

Which statement best explains why compounding pulls ahead over time?

An investment of ৳120,000 returns ৳45,000, ৳50,000, ৳50,000, ৳40,000, and ৳30,000. What is the payback period in years? Round to two decimals.

The same project has an IRR of 24.92% and the cost of capital is 10%. By how many percentage points does the IRR exceed the hurdle rate? Round to two decimals.

What does an IRR of 24.92% mean?

Two projects are mutually exclusive and differ greatly in scale. Which metric should decide?

Which statement shows what a business owns and owes at a single date?

Revenue of ৳100,000 grows 10% a year for two years. What is the revenue in year two?

A company records a credit sale. What happens immediately?