Wall Street Prep Premium Exam Transaction Comps Modeling Wall Street Prep Exam

Wall Street Prep Premium Exam Transaction Comps Modeling Wall Street Prep Exam 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? - CORRECT ANSWER-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 - CORRECT ANSWER-36.5 What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? - CORRECT ANSWER-Extraordinary gains/losses what is false about depreciation and amortization - CORRECT ANSWERD&A may be classified within interest expense Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capital was - CORRECT ANSWER-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 - CORRECT ANSWER-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 - CORRECT ANSWER-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 - CORRECT ANSWER-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? - CORRECT ANSWER-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 - CORRECT ANSWER-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? - CORRECT ANSWER65.7 days Which of the following is true - CORRECT ANSWER-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? - CORRECT ANSWER-60.6 million non-controlling interest - CORRECT ANSWER-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