2025/2026 Wall Street Prep Premium
Exam:Transaction Comps Modeling Wall Street
Prep Exam
What is generally not considered to be a pre-tax non-recurring (unusual
or infrequent) item? - ANSWERS-Extraordinary gains/losses
what is false about depreciation and amortization - ANSWERS-D&A
may be classified within interest expense
Company X's current assets increased by $40 million from 2007-2008
while the companies current liabilities increased by $25 million over the
same period. the cash impact of the change in working capital was -
ANSWERS-a decrease of 15 million
the final component of an earnings projection model is calculating
interest expense. the calculation may create a circular reference
because - ANSWERS-interest expense affects net income, which
affects FCF, which affects the amount of debt a company pays down,
which, in turn affects the interest expense, hence the circular reference
a 10-q financial filing has all of the following characteristics except -
ANSWERS-issued four times a year.
,Depreciation Expense found in the SG&A line of the income statement
for a manufacturing firm would most likely be attributable to which of
the following - ANSWERS-computers used by the accounting
department
If a company has projected revenues of $10 billion, a gross profit
margin of 65%, and projected SG&A expenses of $2billion, what is the
company's operating (EBIT) margin? - ANSWERS-45%
A company has the following information, 1. 2014 revenues of $5
billion,2013 Accounts receivable of $400 million, 2014 accounts
receivable of $600 million, what are the days sales outstanding -
ANSWERS-36.5
A company has the following information:
• 2014 Revenues of $8 billion
• 2014 COGS of $5 billion
• 2013 Accounts receivable of $400 million
• 2014 Accounts receivable of $600 million
• 2013 Inventories of $1 billion
• 2014 Inventories of $800 million
• 2013 Accounts payable of $250 million
• 2014 Accounts payable of $300 million
, What are the inventory days for the company? - ANSWERS-65.7 days
Which of the following is true - ANSWERS-Coca Cola's brand name is
not reflected as an intangible asset on its balance sheet
A company has the following information:
• 2014 share repurchase plan of $4 billion
• Average share price of $60 for the year 2013
• Expected EPS growth for 2014 of 10%
What should the number of shares repurchased by the company be in
your financial model? - ANSWERS-60.6 million
non-controlling interest - ANSWERS-is an expense on the income
statement and equity o the balance sheet
A company has the following information:
• 2013 retained earnings balance of $12 billion
• Net income of $3.5 billion in 2014
• Capex of $200 million in 2014
• Preferred dividends of $100 million in 2014
• Common dividends of $400 million in 2014
Exam:Transaction Comps Modeling Wall Street
Prep Exam
What is generally not considered to be a pre-tax non-recurring (unusual
or infrequent) item? - ANSWERS-Extraordinary gains/losses
what is false about depreciation and amortization - ANSWERS-D&A
may be classified within interest expense
Company X's current assets increased by $40 million from 2007-2008
while the companies current liabilities increased by $25 million over the
same period. the cash impact of the change in working capital was -
ANSWERS-a decrease of 15 million
the final component of an earnings projection model is calculating
interest expense. the calculation may create a circular reference
because - ANSWERS-interest expense affects net income, which
affects FCF, which affects the amount of debt a company pays down,
which, in turn affects the interest expense, hence the circular reference
a 10-q financial filing has all of the following characteristics except -
ANSWERS-issued four times a year.
,Depreciation Expense found in the SG&A line of the income statement
for a manufacturing firm would most likely be attributable to which of
the following - ANSWERS-computers used by the accounting
department
If a company has projected revenues of $10 billion, a gross profit
margin of 65%, and projected SG&A expenses of $2billion, what is the
company's operating (EBIT) margin? - ANSWERS-45%
A company has the following information, 1. 2014 revenues of $5
billion,2013 Accounts receivable of $400 million, 2014 accounts
receivable of $600 million, what are the days sales outstanding -
ANSWERS-36.5
A company has the following information:
• 2014 Revenues of $8 billion
• 2014 COGS of $5 billion
• 2013 Accounts receivable of $400 million
• 2014 Accounts receivable of $600 million
• 2013 Inventories of $1 billion
• 2014 Inventories of $800 million
• 2013 Accounts payable of $250 million
• 2014 Accounts payable of $300 million
, What are the inventory days for the company? - ANSWERS-65.7 days
Which of the following is true - ANSWERS-Coca Cola's brand name is
not reflected as an intangible asset on its balance sheet
A company has the following information:
• 2014 share repurchase plan of $4 billion
• Average share price of $60 for the year 2013
• Expected EPS growth for 2014 of 10%
What should the number of shares repurchased by the company be in
your financial model? - ANSWERS-60.6 million
non-controlling interest - ANSWERS-is an expense on the income
statement and equity o the balance sheet
A company has the following information:
• 2013 retained earnings balance of $12 billion
• Net income of $3.5 billion in 2014
• Capex of $200 million in 2014
• Preferred dividends of $100 million in 2014
• Common dividends of $400 million in 2014
