Wall Street Prep Premium Exam with Possible Test Questions and Complete Solutions 2025/2026

1. Enterpriseg 8 Value:g 8 Operatingg8Assets-Operationg8Liabilities



(measures only value of core operations)
g8 g8 g8 g8 g8



2. Operatingg 8 Assets:g 8 Allg8assetsg8besidesg8cashg8&g8otherg8investmentg8assets

3. Operatingg8Liabilities:g8Allg8liabilitiesg8exceptg8forg8debtg8&g8debt-likeg8liabilities

4. Equityg 8 Value=:g 8 Enterpriseg8Value-Netg8Debt



(measures portion of entire business that belongs to equity)
g8 g8 g8 g8 g8 g8 g8 g8



5. Equity=:g 8 Assets-Liabilities

6. Bookg 8 Valueg 8 vsg 8 Marketg 8 Value:g 8 Example:

Google has $104b equity book value.
g8 g8 g8 g8 g8




Shares trade @ $500 w 680m shares outstanding.
g8 g8 g8 g8 g8 g8 g8




$500*680m=$340b market cap. Go g8 g8 g8



ogle has $60b in cash & $5b in debt.
g8 g8 g8 g8 g8 g8 g8 g8



Enterprise value = $340b+($5b-$60b)=$285b.
g8 g8 g8



7. Cashg8flows=:g8Operatingg8cashg8flows-cashg8reinvestment

8. DCFg8valuesg8ag8businessg8asg8the...:g8sumg8ofg8allg8theg8cashg8flowsg8itg8willg8generate,g8discountedg8tog8theg8PVg
8 at a rate that reflects the riskiness of the cash flows.
g8 g8 g8 g8 g8 g8 g8 g8 g8 g8



9. DCFg 8 Value=:g 8 Sum(cashg8flows/(1+discountg8rate))
g8
g8