Module 3 Quiz :Introduction to Corporate Finance (Business Foundations Specialization) Answers 2026

Question 1

GoPro NOPAT (EBIT = 190, Tax = 35%)

✅ 123.5
❌ 256.5
❌ 292.3
❌ 66.5

Explanation:
NOPAT = EBIT × (1 − Tax rate)
= 190 × 0.65 = 123.5

Question 2

Fusion Energy NOPAT (EBIT = 275, Tax = 25%)

❌ 366.67
❌ 68.75
✅ 206.25
❌ 343.75

Explanation:
NOPAT = 275 × 0.75 = 206.25

Question 3

Momo’s Candy NOPAT (EBIT = 12, Tax = 10%)

✅ 10.8
❌ 13.3
❌ 12.9
❌ 13.2

Explanation:
NOPAT = 12 × 0.90 = 10.8

Question 4

Fragile Express Delivery NOPAT (EBIT = 725, Tax = 37%)

❌ 993.25
✅ 456.75
❌ 725.63
❌ 1,150.79

Explanation:
NOPAT = 725 × 0.63 = 456.75

Question 5

GoPro Unlevered Free Cash Flow (2014)

❌ −161
❌ 43.8
✅ −125
❌ 8

Explanation:
UFCF = NOPAT + Depreciation − CapEx − ΔNWC
= 123.5 + 18 − 27.5 − 239 = −125

Question 6

Fusion Energy Unlevered Free Cash Flow (2015)

❌ 116.25
✅ 256.25
❌ 393.75
❌ 373.75

Explanation:
Decrease in NWC is a cash inflow
UFCF = 206.25 + 10 − 30 + 70 = 256.25

Question 7

Momo’s Candy Unlevered Free Cash Flow (2013)

✅ 5.3
❌ 6.3
❌ 9.3
❌ 11.3

Explanation:
UFCF = 10.8 − 0.5 − 2 − 3 = 5.3

Question 8

Fragile Express Delivery Unlevered Free Cash Flow (2019)

✅ 526.65
❌ 381.05
❌ 329.05
❌ 438.85

Explanation:
UFCF = 456.75 + 26 − 28.9 + 72.8 = 526.65

Question 9

What does negative unlevered free cash flow imply?

❌ Revenues are less than costs
❌ The firm is over-investing
❌ Shareholders have made a bad investment
✅ The firm must raise capital from capital markets or liquidate internal assets
❌ Management is doing a bad job

Explanation:
Negative UFCF means operating cash is insufficient, so external financing or cash reserves are required.

Question 10

True/False: Changing capital structure alters unlevered free cash flow.

❌ True
✅ False

Explanation:
Unlevered free cash flow depends on operations, not financing decisions.

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