M&A Modeling Exam Answers from Wall Street Prep / Wall Street Prep
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What is generally not considered to be a
pre-tax non-recurring (unusual or infre- Extraordinary gains/losses
quent) item?
what is false about depreciation and D&A may be classified within interest ex-
amortization pense
Company X's current assets increased
by $40 million from 2007-2008 while the
companies current liabilities increased
a decrease of 15 million
by $25 million over the same period. the
cash impact of the change in working
capital was
interest expense affects net income,
the final component of an earnings pro-
which affects FCF, which affects the
jection model is calculating interest ex-
amount of debt a company pays down,
pense. the calculation may create a cir-
which, in turn affects the interest ex-
cular reference because
pense, hence the circular reference
a 10-q financial filing has all of the follow-
issued four times a year.
ing characteristics except
Depreciation Expense found in the
SG&A line of the income statement for a computers used by the accounting de-
manufacturing firm would most likely be partment
attributable to which of the following
If a company has projected revenues of
$10 billion, a gross profit margin of 65%,
and projected SG&A expenses of $2bil- 45%
lion, what is the company's operating
(EBIT) margin?
A company has the following informa-
tion, 1. 2014 revenues of $5 billion,2013
Accounts receivable of $400 million, 36.5
2014 accounts receivable of $600 mil-
lion, what are the days sales outstanding
A company has the following informa-
tion:
• 2014 Revenues of $8 billion
, M&A Modeling Exam Answers from Wall Street Prep / Wall Street Prep
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• 2014 COGS of $5 billion
• 2013 Accounts receivable of $400 mil-
lion
• 2014 Accounts receivable of $600 mil-
lion
• 2013 Inventories of $1 billion 65.7 days
• 2014 Inventories of $800 million
• 2013 Accounts payable of $250 million
• 2014 Accounts payable of $300 million
What are the inventory days for the com-
pany?
Coca Cola's brand name is not reflect-
Which of the following is true ed as an intangible asset on its balance
sheet
A company has the following informa-
tion:
• 2014 share repurchase plan of $4 bil-
lion
• Average share price of $60 for the year
60.6 million
2013
• Expected EPS growth for 2014 of 10%
What should the number of shares re-
purchased by the company be in your
financial model?
is an expense on the income statement
non-controlling interest
and equity o the balance sheet
A company has the following informa-
tion:
• 2013 retained earnings balance of $12
billion
• Net income of $3.5 billion in 2014
15 billion
• Capex of $200 million in 2014
• Preferred dividends of $100 million in
2014
• Common dividends of $400 million in
2014
Premium Exam ..REVIEW : M& A MODELING RETAKE EXAM
Study online at https://quizlet.com/_heqf8t
What is generally not considered to be a
pre-tax non-recurring (unusual or infre- Extraordinary gains/losses
quent) item?
what is false about depreciation and D&A may be classified within interest ex-
amortization pense
Company X's current assets increased
by $40 million from 2007-2008 while the
companies current liabilities increased
a decrease of 15 million
by $25 million over the same period. the
cash impact of the change in working
capital was
interest expense affects net income,
the final component of an earnings pro-
which affects FCF, which affects the
jection model is calculating interest ex-
amount of debt a company pays down,
pense. the calculation may create a cir-
which, in turn affects the interest ex-
cular reference because
pense, hence the circular reference
a 10-q financial filing has all of the follow-
issued four times a year.
ing characteristics except
Depreciation Expense found in the
SG&A line of the income statement for a computers used by the accounting de-
manufacturing firm would most likely be partment
attributable to which of the following
If a company has projected revenues of
$10 billion, a gross profit margin of 65%,
and projected SG&A expenses of $2bil- 45%
lion, what is the company's operating
(EBIT) margin?
A company has the following informa-
tion, 1. 2014 revenues of $5 billion,2013
Accounts receivable of $400 million, 36.5
2014 accounts receivable of $600 mil-
lion, what are the days sales outstanding
A company has the following informa-
tion:
• 2014 Revenues of $8 billion
, M&A Modeling Exam Answers from Wall Street Prep / Wall Street Prep
Premium Exam ..REVIEW : M& A MODELING RETAKE EXAM
Study online at https://quizlet.com/_heqf8t
• 2014 COGS of $5 billion
• 2013 Accounts receivable of $400 mil-
lion
• 2014 Accounts receivable of $600 mil-
lion
• 2013 Inventories of $1 billion 65.7 days
• 2014 Inventories of $800 million
• 2013 Accounts payable of $250 million
• 2014 Accounts payable of $300 million
What are the inventory days for the com-
pany?
Coca Cola's brand name is not reflect-
Which of the following is true ed as an intangible asset on its balance
sheet
A company has the following informa-
tion:
• 2014 share repurchase plan of $4 bil-
lion
• Average share price of $60 for the year
60.6 million
2013
• Expected EPS growth for 2014 of 10%
What should the number of shares re-
purchased by the company be in your
financial model?
is an expense on the income statement
non-controlling interest
and equity o the balance sheet
A company has the following informa-
tion:
• 2013 retained earnings balance of $12
billion
• Net income of $3.5 billion in 2014
15 billion
• Capex of $200 million in 2014
• Preferred dividends of $100 million in
2014
• Common dividends of $400 million in
2014
