WALL STREET PREP PREMIUM EXAM
TRANSACTION COMPS MODELING
WALL STREET PREP EXAM QUESTIONS
WITH CORRECT ANSWERS 2025/2026
What Iis Igenerally Inot Iconsidered Ito Ibe Ia Ipre-tax Inon-recurring I(unusual Ior Iinfrequent) Iitem? I-
Icorrect Ianswer-Extraordinary Igains/losses
what Iis Ifalse Iabout Idepreciation Iand Iamortization I- Icorrect Ianswer-
ID&A Imay Ibe Iclassified Iwithin Iinterest Iexpense
Company IX's Icurrent Iassets Iincreased Iby I$40 Imillion Ifrom I2007-
2008 Iwhile Ithe Icompanies Icurrent Iliabilities Iincreased Iby I$25 Imillion Iover Ithe Isame Iperiod. Ithe Icash
Iimp Iact Iof Ithe Ichange Iin Iworking Icapital Iwas I- Icorrect Ianswer-a Idecrease Iof I15 Imillion
the Ifinal Icomponent Iof Ian Iearnings Iprojection Imodel IisYcalculating Iinterest Iexpense. Ithe Icalculation
Imay Icreate Ia Icircular Ireference Ibecause I- Icorrect Ianswer-
interest Iexpense Iaffects Inet Iincome, Iwhich Iaffects IFCF, Iwhich Iaffects Ithe Iamount Iof Idebt Ia Icompany Ipays
Idown, Iwhich, Iin Iturn Iaffects Ithe Iinterest Iexpense, Ihence Ithe Icircular Ireference
,a I10-q Ifinancial IfilingYhas Iall Iof Ithe Ifollowing Icharacteristics Iexcept I-Ycorrect Ianswer-
Iissued Ifour Itimes Ia Iyear.
Depreciation IExpense Ifound Iin Ithe ISG&A Iline Iof Ithe Iincome Istatement Ifor Ia Imanufacturing Ifirm
Iwould Im Iost Ilikely Ibe Iattributable Ito Iwhich Iof Ithe Ifollowing I- Icorrect Ianswer-
computers Iused Iby Ithe Iaccounting Idepartment
If Ia Icompany Ihas Iprojected Irevenues Iof I$10 Ibillion, Ia Igross Iprofit Imargin Iof I65%, Iand Iprojected ISG&A
Iexp Ienses Iof I$2billion, Iwhat Iis Ithe Icompany's Ioperating I(EBIT) Imargin? I- Icorrect Ianswer-45%
A Icompany Ihas Ithe Ifollowing Iinformation, I1. I2014 Irevenues Iof I$5 Ibillion,2013 IAccounts Ireceivable
Iof I$40 I0 Imillion, I2014 Iaccounts Ireceivable Iof I$600 Imillion, Iwhat Iare Ithe Idays Isales Ioutstanding I-
Icorrect Ianswer- I36.5
, A Icompany Ihas Ithe Ifollowing Iinformation:
• 2014 IRevenues Iof I$8 Ibillion
• 2014 ICOGS Iof I$5 Ibillion
• 2013 IAccounts Ireceivable Iof I$400 Imillion
• 2014 IAccounts Ireceivable Iof I$600 Imillion
• 2013 IInventories Iof I$1 Ibillion
• 2014 IInventories Iof I$800 Imillion
• 2013 IAccounts Ipayable Iof I$250 Imillion
• 2014 IAccounts Ipayable Iof I$300 Imillion
WhatYare Ithe Iinventory Idays Ifor Ithe Icompany? I- Icorrect Ianswer-65.7 Idays
Which Iof Ithe Ifollowing Iis Itrue I- Icorrect Ianswer-
Coca ICola's Ibrand Iname Iis Inot Ireflected Ias Ian Iintangible Iasset Ion Iits Ibalance Isheet
A Icompany Ihas Ithe Ifollowing Iinformation:
• 2014 Ishare Irepurchase Iplan Iof I$4 Ibillion
• Average Ishare Iprice Iof I$60 Ifor Ithe Iyear I2013
• Expected IEPS Igrowth Ifor I2014 Iof I10%
What Ishould Ithe Inumber Iof Ishares Irepurchased Iby Ithe Icompany Ibe Iin Iyour Ifinancial Imodel? I-
Icorrect Ianswer-60.6 Imillion
non-controlling Iinterest I- Icorrect Ianswer-
is Ian Iexpense Ion Ithe Iincome Istatement Iand Iequity Io Ithe Ibalance Isheet
TRANSACTION COMPS MODELING
WALL STREET PREP EXAM QUESTIONS
WITH CORRECT ANSWERS 2025/2026
What Iis Igenerally Inot Iconsidered Ito Ibe Ia Ipre-tax Inon-recurring I(unusual Ior Iinfrequent) Iitem? I-
Icorrect Ianswer-Extraordinary Igains/losses
what Iis Ifalse Iabout Idepreciation Iand Iamortization I- Icorrect Ianswer-
ID&A Imay Ibe Iclassified Iwithin Iinterest Iexpense
Company IX's Icurrent Iassets Iincreased Iby I$40 Imillion Ifrom I2007-
2008 Iwhile Ithe Icompanies Icurrent Iliabilities Iincreased Iby I$25 Imillion Iover Ithe Isame Iperiod. Ithe Icash
Iimp Iact Iof Ithe Ichange Iin Iworking Icapital Iwas I- Icorrect Ianswer-a Idecrease Iof I15 Imillion
the Ifinal Icomponent Iof Ian Iearnings Iprojection Imodel IisYcalculating Iinterest Iexpense. Ithe Icalculation
Imay Icreate Ia Icircular Ireference Ibecause I- Icorrect Ianswer-
interest Iexpense Iaffects Inet Iincome, Iwhich Iaffects IFCF, Iwhich Iaffects Ithe Iamount Iof Idebt Ia Icompany Ipays
Idown, Iwhich, Iin Iturn Iaffects Ithe Iinterest Iexpense, Ihence Ithe Icircular Ireference
,a I10-q Ifinancial IfilingYhas Iall Iof Ithe Ifollowing Icharacteristics Iexcept I-Ycorrect Ianswer-
Iissued Ifour Itimes Ia Iyear.
Depreciation IExpense Ifound Iin Ithe ISG&A Iline Iof Ithe Iincome Istatement Ifor Ia Imanufacturing Ifirm
Iwould Im Iost Ilikely Ibe Iattributable Ito Iwhich Iof Ithe Ifollowing I- Icorrect Ianswer-
computers Iused Iby Ithe Iaccounting Idepartment
If Ia Icompany Ihas Iprojected Irevenues Iof I$10 Ibillion, Ia Igross Iprofit Imargin Iof I65%, Iand Iprojected ISG&A
Iexp Ienses Iof I$2billion, Iwhat Iis Ithe Icompany's Ioperating I(EBIT) Imargin? I- Icorrect Ianswer-45%
A Icompany Ihas Ithe Ifollowing Iinformation, I1. I2014 Irevenues Iof I$5 Ibillion,2013 IAccounts Ireceivable
Iof I$40 I0 Imillion, I2014 Iaccounts Ireceivable Iof I$600 Imillion, Iwhat Iare Ithe Idays Isales Ioutstanding I-
Icorrect Ianswer- I36.5
, A Icompany Ihas Ithe Ifollowing Iinformation:
• 2014 IRevenues Iof I$8 Ibillion
• 2014 ICOGS Iof I$5 Ibillion
• 2013 IAccounts Ireceivable Iof I$400 Imillion
• 2014 IAccounts Ireceivable Iof I$600 Imillion
• 2013 IInventories Iof I$1 Ibillion
• 2014 IInventories Iof I$800 Imillion
• 2013 IAccounts Ipayable Iof I$250 Imillion
• 2014 IAccounts Ipayable Iof I$300 Imillion
WhatYare Ithe Iinventory Idays Ifor Ithe Icompany? I- Icorrect Ianswer-65.7 Idays
Which Iof Ithe Ifollowing Iis Itrue I- Icorrect Ianswer-
Coca ICola's Ibrand Iname Iis Inot Ireflected Ias Ian Iintangible Iasset Ion Iits Ibalance Isheet
A Icompany Ihas Ithe Ifollowing Iinformation:
• 2014 Ishare Irepurchase Iplan Iof I$4 Ibillion
• Average Ishare Iprice Iof I$60 Ifor Ithe Iyear I2013
• Expected IEPS Igrowth Ifor I2014 Iof I10%
What Ishould Ithe Inumber Iof Ishares Irepurchased Iby Ithe Icompany Ibe Iin Iyour Ifinancial Imodel? I-
Icorrect Ianswer-60.6 Imillion
non-controlling Iinterest I- Icorrect Ianswer-
is Ian Iexpense Ion Ithe Iincome Istatement Iand Iequity Io Ithe Ibalance Isheet
