Discounted cash flow 2024-2025
Discounted cash flow Wall Street preparation
Exam based questions and guaranteed
answers
2024-2025
What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? - ✔✔✔Extraordinary
gains/losses
What is false about depreciation and amortization - ✔✔✔D&A may be classified within interest expense
Company X's current assets increased by $40 million from 2007-2008 while the company’s current liabilities increased
by $25 million over the same period. The cash impact of the change in working capital was - ✔✔✔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 - ✔✔✔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 - ✔✔✔issued four times a year.
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 - ✔✔✔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? - ✔✔✔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 - ✔✔✔36.5
A company has the following information:
@ pg. 1
, Discounted cash flow 2024-2025
• 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? - ✔✔✔65.7 days
Which of the following is true - ✔✔✔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? - ✔✔✔60.6 million
Non-controlling interest - ✔✔✔is an expense on the income statement and equity o the balance sheet
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? - ✔✔✔15 billion
@ pg. 2
Discounted cash flow Wall Street preparation
Exam based questions and guaranteed
answers
2024-2025
What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? - ✔✔✔Extraordinary
gains/losses
What is false about depreciation and amortization - ✔✔✔D&A may be classified within interest expense
Company X's current assets increased by $40 million from 2007-2008 while the company’s current liabilities increased
by $25 million over the same period. The cash impact of the change in working capital was - ✔✔✔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 - ✔✔✔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 - ✔✔✔issued four times a year.
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 - ✔✔✔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? - ✔✔✔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 - ✔✔✔36.5
A company has the following information:
@ pg. 1
, Discounted cash flow 2024-2025
• 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? - ✔✔✔65.7 days
Which of the following is true - ✔✔✔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? - ✔✔✔60.6 million
Non-controlling interest - ✔✔✔is an expense on the income statement and equity o the balance sheet
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? - ✔✔✔15 billion
@ pg. 2
