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DSST Principles of Finance — Information & Free Practice

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DSST Principles of Finance

Provider
Prometric
Format
Multiple-choice; one correct answer and three incorrect options per question.
Exam questions
Total questions: 100.
Time limit
2 hours
Passing score
ACE credit recommendation minimum score: 400; receiving institutions determine credit acceptance.
Exam fee
Official DSST program fee: $100 per exam; administering institutions may charge additional administration fees. Funding eligibility is separate.
Examination outline
  • Financial Statements and Planning (20%)
    • Fundamentals of financial statements
    • Ratio analysis
    • Taxes
  • Time Value of Money (20%)
    • Present value (lump sum and annuity)
    • Future value (lump sum and annuity)
    • Annuity due versus ordinary annuity
    • Interest rate calculations
  • Working Capital Management (10%)
    • Short-term sources of funds
    • Management of short-term assets and liabilities
    • Cash budget
  • Valuation and Characteristics of Stocks and Bonds (8%)
    • Bonds
    • Common stock and preferred stock
  • Capital Budgeting (12%)
    • Capital asset
    • Project cash flow forecasting and analysis
    • Financial analysis tools
    • Break even and sensitivity analysis
  • Cost of Capital (11%)
    • Cost of debt
    • Cost of equity
    • Weighted average cost of capital
  • Risk and Return (12%)
    • Expected return on an asset and a portfolio
    • Measures of risk
    • Determinants of interest rates
    • Capital Asset Pricing Model (CAPM) and Security Market Line (SML)
    • Diversification
  • International Financial Management (7%)
    • Impact of exchange rates on international financial markets
    • Currency risk and political risk
    • Tools
Examination sources