Official exam: FINRA Series 79 (Investment Banking Representative)
Take a free Series 79 practice test online: a full 75-question paper with every answer explained, no sign-up, scored by topic. The full 300-question bank and the timed simulator are $14.99 for 30 days.
FINRA Series 79 (Investment Banking Representative): a 300-question bank of original practice questions written to the published exam content outline, 4 full papers of 75 questions each with no repeats. These are not questions from the real exam.
Series 79 exam facts
Exam fee
$395
Questions
75 multiple-choice questions
Time allowed
2 hours 30 minutes
Passing score
73
Who can sit it
Needs a FINRA member firm sponsor; the SIE is a corequisite
How to schedule
Your sponsoring firm registers you with FINRA, then you book a Prometric test center. You get a 120-day window after enrolling to sit the exam.
. Source: FINRA Series 79 exam page. Fees and rules change, so confirm on the official page before you book. No official pass rate is published for this exam, so we do not print one. All securities exams
Take a full practice test free. 75 original practice questions built to the exam's domain weights, every answer explained, no sign-up required, with a domain-by-domain score at the end.
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A company has 50 million shares outstanding trading at $20.00, total debt of $300 million, cash of $100 million, and noncontrolling interest of $50 million. No preferred stock is outstanding. What is its enterprise value?
A. $1,250 million
B. $1,450 million USD
C. $1,150 million
D. $1,300 million
Show answer and reasoning
Correct answer: A. $1,250 million
Enterprise value is market capitalization ($1,000 million) plus debt ($300 million) plus noncontrolling interest ($50 million) minus cash ($100 million), which equals $1,250 million.
B: Adding cash to the enterprise value calculation treats a non-operating asset as part of the operating business; enterprise value is market capitalization plus debt plus noncontrolling interest minus cash, so this overstates the correct figure.
C: This subtracts noncontrolling interest rather than adding it, which understates enterprise value; noncontrolling interest is added because the consolidated financials include the minority's share of operations.
D: This includes only market capitalization and debt, ignoring both the cash deduction and the noncontrolling interest addition, so it does not match the enterprise value formula.
Source: Series 79 Outline 1.2: Valuation
A company has an enterprise value of $1,250 million. Its trailing twelve-month EBIT is $100 million, EBITDA is $125 million, and net income is $60 million. Its market capitalization is $1,000 million. What is its EV/EBITDA multiple?
A. 20.833x
B. 8.0x
C. 12.5x
D. 10.0x
Show answer and reasoning
Correct answer: D. 10.0x
EV/EBITDA is $1,250 million divided by $125 million, which equals 10.0x.
A: This multiple divides enterprise value by trailing net income, pairing an unlevered numerator with an after-interest and after-tax denominator. EV/EBITDA must use EBITDA, not net income, in the denominator.
B: This uses market capitalization divided by EBITDA, mixing an equity-level numerator with an unlevered operating metric. The correct EV/EBITDA multiple requires enterprise value, not market capitalization, in the numerator.
C: This divides enterprise value by EBIT rather than EBITDA, so it reflects a different valuation multiple. It ignores the depreciation and amortization add-back that EBITDA includes.
Source: Series 79 Outline 1.2: Valuation
A stock trades at $40.00. The company reported diluted EPS of $2.50 for the last twelve months and consensus EPS for next year is $3.20. What is its trailing P/E multiple?
A. 12.5x
B. 14.0x
C. 16.0x
D. 6.25x
Show answer and reasoning
Correct answer: C. 16.0x
Trailing P/E is price divided by last-twelve-month EPS: $40.00 / $2.50 = 16.0x.
A: This is the forward P/E, calculated as price divided by next year's consensus EPS ($40.00 / $3.20), which does not use trailing earnings.
B: This uses the average of trailing and forward EPS ($40.00 / $2.85), but trailing P/E uses only last-twelve-month EPS.
D: This is the earnings yield (trailing EPS divided by price, or $2.50 / $40.00), not a P/E multiple.
Source: Series 79 Outline 1.2: Valuation
A company trades at a P/E of 20.0x and analysts expect EPS to grow 10% per year. What is its PEG ratio?
A. 10.0
B. 0.5
C. 200.0
D. 2.0
Show answer and reasoning
Correct answer: D. 2.0
PEG is P/E divided by the expected growth rate expressed as a whole number: 20 / 10 = 2.0.
A: 10.0 is the growth rate itself and ignores the P/E.
B: 0.5 inverts the ratio (growth divided by P/E).
C: 200.0 multiplies P/E by the growth rate instead of dividing.
Source: Series 79 Outline 1.2: Valuation
A company's outstanding bonds have a yield to maturity of 8.0% and the company's marginal tax rate is 25%. What after-tax cost of debt should be used in its WACC calculation?
A. 6.0%
B. 8.0%
C. 2.0%
D. 10.0%
Show answer and reasoning
Correct answer: A. 6.0%
After-tax cost of debt is the pre-tax yield times one minus the tax rate: 8.0% x (1 - 0.25) = 6.0%.
B: 8.0% is the pre-tax yield and ignores the interest tax shield that reduces the effective cost.
C: 2.0% is the value of the tax shield itself (8.0% x 25%), not the cost of debt after the shield.
D: 10.0% adds the tax rate effect to the yield instead of subtracting it.
Where can I take a free Series 79 practice test online?
Right here. CertQuestUSA's free Series 79 practice test online is a full 75-question practice paper built to the published content outline's domain weights, with every answer explained, with no sign-up and no credit card, and shows your score by topic at the end. The full 300-question bank, with every answer explained and cited to the exam sponsor's published content outline, is $14.99 for a 30-day pass that never renews.
How many questions are on the CertQuestUSA FINRA Series 79 (Investment Banking Representative) practice test?
300 questions total, split into 4 full papers of 75 each with no repeats across papers.
What topics does the FINRA Series 79 (Investment Banking Representative) test cover?
3 domains, with the heaviest weight on F1 Data Analysis Valuation (49%), F2 Underwriting Registration (27%), and F3 Ma Tender Restructuring (24%).
Is there a free FINRA Series 79 (Investment Banking Representative) practice test?
Yes -- one full 75-question practice paper built to the exam's domain weights, free with no sign-up, with every answer explained and a domain-by-domain score at the end.
