EXCEL CRASH COURSE EXAM [WALL STREET
PREP] ACTUAL EXAM 100% [QUESTIONS
$ANSWERS] LATEST EXAM
A company has the following information:
• 2013 retained earnings balance of $12 billion
• Net income of $3.5 billion in 2014
• Capex of $200 million in 2014
• Preferred dividends of $100 million in 2014
• Common dividends of $400 million in 2014
What is the retained earnings balance at the end of 2014? - ANS✔✔---15 billion
in order to find out how much cash is available to pay down short term debt, such as
revolving credit line, you must take - ANS✔✔---beginning cash balance + pre-debt
cash flows - min. cash balance - required principal payments of LT and other debt
to calculate interest expense in the future, you should do which of the following -
ANS✔✔---apply a weighted average interest rate times the average debt balance
over the course of the year
enterprise (transaction) value represents the: - ANS✔✔---value of all capital invested
in a business
A debt holder would be primarily concerned with which of the following multiples?
, I. Enterprise (Transaction) Value / EBITDA
II. Price/Earnings
III. Enterprise (Transaction) Value / Sales - ANS✔✔---1 and 3 only
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400 million
shares outstanding. The company has net debt of $300 million. After building an
earnings model for Company X, you have projected free cash flow for each year
through 2020 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow 110 120 150 170 200 250 280
You estimate that the weighted average cost of capital (WACC) for Company X is 10%
and assume that free cash flows grow in perpetuity at 3.0% annually beyond 2020, the
final projected year. Estimate the present value of the projected free cash flows through
2020, discounted at the stated WACC. Assume all cash flows are generated at the end
of the year (i.e., no mid-year adjustment): - ANS✔✔---837 million
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400 million
shares outstanding. The
company has net debt of $300 million. After building an earnings model for Company X,
you have projected free
cash flow for each year through 2014 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow 110 120 150 170 200 250 280
You estimate that the weighted average cost of capital (WACC) for Company X is 10%
and assume that free cash
flows grow in perpetuity at 3.0% annually beyond 2020, the final projected year.
Calculate Company X's implied Enterprise Value by using the discounted cash flow
method: - ANS✔✔---2951.2 million
PREP] ACTUAL EXAM 100% [QUESTIONS
$ANSWERS] LATEST EXAM
A company has the following information:
• 2013 retained earnings balance of $12 billion
• Net income of $3.5 billion in 2014
• Capex of $200 million in 2014
• Preferred dividends of $100 million in 2014
• Common dividends of $400 million in 2014
What is the retained earnings balance at the end of 2014? - ANS✔✔---15 billion
in order to find out how much cash is available to pay down short term debt, such as
revolving credit line, you must take - ANS✔✔---beginning cash balance + pre-debt
cash flows - min. cash balance - required principal payments of LT and other debt
to calculate interest expense in the future, you should do which of the following -
ANS✔✔---apply a weighted average interest rate times the average debt balance
over the course of the year
enterprise (transaction) value represents the: - ANS✔✔---value of all capital invested
in a business
A debt holder would be primarily concerned with which of the following multiples?
, I. Enterprise (Transaction) Value / EBITDA
II. Price/Earnings
III. Enterprise (Transaction) Value / Sales - ANS✔✔---1 and 3 only
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400 million
shares outstanding. The company has net debt of $300 million. After building an
earnings model for Company X, you have projected free cash flow for each year
through 2020 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow 110 120 150 170 200 250 280
You estimate that the weighted average cost of capital (WACC) for Company X is 10%
and assume that free cash flows grow in perpetuity at 3.0% annually beyond 2020, the
final projected year. Estimate the present value of the projected free cash flows through
2020, discounted at the stated WACC. Assume all cash flows are generated at the end
of the year (i.e., no mid-year adjustment): - ANS✔✔---837 million
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400 million
shares outstanding. The
company has net debt of $300 million. After building an earnings model for Company X,
you have projected free
cash flow for each year through 2014 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow 110 120 150 170 200 250 280
You estimate that the weighted average cost of capital (WACC) for Company X is 10%
and assume that free cash
flows grow in perpetuity at 3.0% annually beyond 2020, the final projected year.
Calculate Company X's implied Enterprise Value by using the discounted cash flow
method: - ANS✔✔---2951.2 million
