2024 Transaction Comps
Modeling Wall Street / Wall
Street Prep Premium Exam
Transaction Comps Modeling
Wall Street Prep Exam Pass A+
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? - ✔✔✔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 -
✔✔✔ANSWER-36.5
,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 - ✔✔✔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 - ✔✔✔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
What is generally not considered to be a pre-tax non-recurring
(unusual or infrequent) item? - ✔✔✔ANSWER-Extraordinary
gains/losses
what is false about depreciation and amortization - ✔✔✔ANSWER-
D&A may be classified within interest expense
a 10-q financial filing has all of the following characteristics except -
✔✔✔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 - ✔✔✔ANSWER-computers used by the
accounting department
, 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? - ✔✔✔ANSWER-65.7
days
Which of the following is true - ✔✔✔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? - ✔✔✔ANSWER-60.6 million
Modeling Wall Street / Wall
Street Prep Premium Exam
Transaction Comps Modeling
Wall Street Prep Exam Pass A+
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? - ✔✔✔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 -
✔✔✔ANSWER-36.5
,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 - ✔✔✔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 - ✔✔✔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
What is generally not considered to be a pre-tax non-recurring
(unusual or infrequent) item? - ✔✔✔ANSWER-Extraordinary
gains/losses
what is false about depreciation and amortization - ✔✔✔ANSWER-
D&A may be classified within interest expense
a 10-q financial filing has all of the following characteristics except -
✔✔✔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 - ✔✔✔ANSWER-computers used by the
accounting department
, 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? - ✔✔✔ANSWER-65.7
days
Which of the following is true - ✔✔✔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? - ✔✔✔ANSWER-60.6 million
