Questions for Building Financial Models Course.
Balance Sheet
Profit and Loss (P&L) Statement
Cash Flow Waterfall
Capex Sheet
True
False
Ignored because sponsors pay these interest costs each month during construction
Capitalized during the construction period, and then depreciated during the operating period of the project
Ignored because lenders always forgive these expenses once operations begin
Ignored because they are always the government’s responsibility to pay
World Bank Reserve Account
Government Grant Reserve Account
Depreciation Reserve Account
Debt Service Reserve Account
True
False
Risk-free rate of return (government borrowing rate)
Cost of debt
Cost of equity
Weighted average cost of capital
Both ROE and IRR on Equity will decrease
Both ROE and IRR on Equity will increase
ROE will increase and IRR on Equity will decrease
Both will be unaffected
=IRR
=PMT
=XIRR
=RATE
Debt service coverage ratio
Loan life service ratio
Project life service ratio
All of the above
Funding of the O&M reserve account
Interest payments to lenders
Dividends to shareholders
Funding of the MMRA
The expected rate of return on the equity investment for a project
The expected rate of return on the total investment for a project
The required rate of return on the entire investment for a project
None of the above
The higher the cost of capital, the higher the NPV
The higher the cost of capital, the lower the NPV
There is no relationship between the project cost of capital and NPV
DSCR will increase
DSCR will decrease
DSCR will not be affected
$630
$600
$570
$530
Increase the interest rate on the loan
Increase the term of the loan
Increase the debt ratio for the project
None of the above