Course Quiz

Question 1 / 20

A rare Fortnite skin costs Epic Games about $500 to design but sells to millions of players for $20 each. This demonstrates that:

A) Epic Games is overcharging customers unfairly B) Price and production cost can be very different from perceived value C) Digital goods have no real value D) The skin's intrinsic value equals $20

Question 2 / 20

What type of value do investors focus on when deciding whether to buy a stock?

A) Personal value B) Sentimental value C) Intrinsic value compared to market value D) Retail value

Question 3 / 20

A YouTube channel with 2 million subscribers but only 5,000 views per video vs. a channel with 200,000 subscribers getting 150,000 views per video. Which channel can charge more for sponsorships?

A) The 200,000 subscriber channel with high engagement B) The 2 million subscriber channel C) They can charge the same D) Neither can get sponsorships

Question 4 / 20

Why is 100 euros today worth more than 100 euros in one year?

A) Because euros lose their physical quality over time B) Because you can invest it, inflation erodes purchasing power, and future payments have risk C) Because the government prints more money each year D) It's actually worth the same amount

Question 5 / 20

If you invest 1,000 euros at 10% annual return, approximately how much will you have after 3 years with compounding?

A) 1,100 euros B) 1,200 euros C) 1,300 euros D) 1,331 euros

Question 6 / 20

You win a prize and can choose: 50,000 euros today OR 60,000 euros in 4 years (guaranteed). If you can invest at 6% annually, which option gives you more money in 4 years?

A) 60,000 in 4 years - it's 10,000 more B) They end up being exactly equal C) 50,000 today - it grows to about 63,000 at 6% D) Cannot determine without a calculator

Question 7 / 20

What makes compounding so powerful over long periods?

A) Your returns start earning their own returns B) Banks give you bonus interest for loyalty C) Inflation increases your money's value D) Tax benefits accumulate over time

Question 8 / 20

What is "Free Cash Flow"?

A) Total revenue before any expenses B) Cash generated after all operating expenses and investments C) Money sitting in the company's bank account D) Profit shown on the income statement

Question 9 / 20

In DCF valuation, what does "discounting" mean?

A) Giving customers a lower price B) Reducing the company's expenses C) Converting future money into today's value using an interest rate D) Ignoring small cash flows

Question 10 / 20

What is "Terminal Value" in a DCF model?

A) The value when the company goes bankrupt B) The company's value at the end of each year C) The initial investment needed to start the company D) The value of all cash flows beyond the explicit forecast period

Question 11 / 20

If you use a higher discount rate in a DCF model, what happens to the present value?

A) It decreases B) It increases C) It stays the same D) It depends on the company's revenue

Question 12 / 20

What does a P/E ratio of 25x mean?

A) The company has 25 million euros in profit B) Investors pay 25 euros for every 1 euro of annual profit C) The stock price will increase 25% next year D) The company has 25 years of history

Question 13 / 20

Why would a company with lower profits be valued higher than one with higher profits?

A) The market is always irrational B) Lower profits mean lower risk C) Investors expect much faster growth in the future D) The company has more employees

Question 14 / 20

What is Enterprise Value (EV)?

A) The stock price multiplied by revenue B) The company's total revenue C) The founder's personal wealth D) Market Cap plus Debt minus Cash

Question 15 / 20

You want to value Spotify using comparables. Which company would be the WORST comparable?

A) Coca-Cola B) YouTube Music (part of Google) C) Netflix D) SoundCloud

Question 16 / 20

A company beats earnings expectations by 20%. The stock jumps 15%. This happens because:

A) The company's intrinsic value instantly changed B) Investors update their expectations about future cash flows C) The company announced a dividend D) More shares were issued

Question 17 / 20

When evaluating news about a company, which question is MOST important to ask?

A) Is the headline dramatic? B) Are other people talking about it on social media? C) Does this change expected future cash flows? D) Did the CEO make a public statement?

Question 18 / 20

Which type of news typically moves stock prices the MOST?

A) CEO giving a speech at a conference B) Minor analyst rating changes C) Generic industry news D) Earnings surprises and guidance changes

Question 19 / 20

When using AI to analyze a company, what's the most important thing to verify?

A) That the AI uses fancy financial terms B) That the specific numbers and facts are accurate and current C) That the AI gives a buy or sell recommendation D) That the response is very long and detailed

Question 20 / 20

What is a company's "moat" in investing terms?

A) A competitive advantage that's hard for rivals to copy B) The water feature around their headquarters C) Their total amount of debt D) The number of products they sell

Quiz Complete!