TRADING COMPS MODELING EXAM
WALL STREET PREP QUESTIONS WITH
100% CORRECT ANSWERS L LATEST
VERSION 2025/2026.
What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? -
ANS Extraordinary gains/losses
what is false about depreciation and amortization - ANS 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 - ANS 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 - ANS 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 - ANS issued four times a
year.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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 - ANS 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? - ANS 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 - ANS 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? - ANS 65.7 days
Which of the following is true - ANS 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? -
ANS 60.6 million
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
WALL STREET PREP QUESTIONS WITH
100% CORRECT ANSWERS L LATEST
VERSION 2025/2026.
What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? -
ANS Extraordinary gains/losses
what is false about depreciation and amortization - ANS 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 - ANS 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 - ANS 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 - ANS issued four times a
year.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, 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 - ANS 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? - ANS 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 - ANS 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? - ANS 65.7 days
Which of the following is true - ANS 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? -
ANS 60.6 million
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
