Wall Street Prep Premium Exam ||2026 Most Recent
Exam Actual Complete Real Exam Questions And
Correct Answers (Verified Answers) Already Graded
A+ | Guaranteed Success | Brand New!!
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
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
An acquisition creates shareholder value: - ANSWER-
when a company acquires a business whose fundamental
value is higher than the purchase price
, • Acquirer purchases 100% of target by issuing additional
stock to purchase target shares
• No premium is offered to the current target share price
• Acquirer share price at announcement is $30
• Target share price at announcement is $50
• Acquirer EPS next year is $3.00
• Target EPS next year is $2.00
• Acquirer has 4 thousand shares outstanding
• Target has 2 thousand shares outstanding
What is the exchange ratio for the deal? - ANSWER-1.7x
• Acquirer purchases 100% of target by issuing additional
stock to purchase target shares
• No premium is offered to the current target share price
Exam Actual Complete Real Exam Questions And
Correct Answers (Verified Answers) Already Graded
A+ | Guaranteed Success | Brand New!!
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
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
An acquisition creates shareholder value: - ANSWER-
when a company acquires a business whose fundamental
value is higher than the purchase price
, • Acquirer purchases 100% of target by issuing additional
stock to purchase target shares
• No premium is offered to the current target share price
• Acquirer share price at announcement is $30
• Target share price at announcement is $50
• Acquirer EPS next year is $3.00
• Target EPS next year is $2.00
• Acquirer has 4 thousand shares outstanding
• Target has 2 thousand shares outstanding
What is the exchange ratio for the deal? - ANSWER-1.7x
• Acquirer purchases 100% of target by issuing additional
stock to purchase target shares
• No premium is offered to the current target share price
