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 ANSWER-
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 -
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