Wall Street Prep Premium Exam:Transaction Comps Modeling
Wall Street Prep Exam [ACTUAL EXAM] LATEST VERSION
[QUESTIONS AND ANSWERS] WITH PRACTICE EXAM
DETAILED AND VERIFIED FOR GUARANTEED PASS- LATEST
UPDATE 2025 GRADED A
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 - KEY TERM 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 - KEY TERM 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 - KEY TERM 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 - KEY
TERM 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?
- KEY TERM 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 - KEY TERM 36.5
A company has the following information:
• 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? - KEY TERM 65.7 days
Which of the following is true - KEY TERM 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? - KEY TERM 60.6 million
non-controlling interest - KEY TERM 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? - KEY TERM 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 - KEY TERM 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 - KEY
TERM apply a weighted average interest rate times the average debt balance over the
course of the year
enterprise (transaction) value represents the: - KEY TERM 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 - KEY TERM 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:
Wall Street Prep Exam [ACTUAL EXAM] LATEST VERSION
[QUESTIONS AND ANSWERS] WITH PRACTICE EXAM
DETAILED AND VERIFIED FOR GUARANTEED PASS- LATEST
UPDATE 2025 GRADED A
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 - KEY TERM 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 - KEY TERM 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 - KEY TERM 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 - KEY
TERM 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?
- KEY TERM 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 - KEY TERM 36.5
A company has the following information:
• 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? - KEY TERM 65.7 days
Which of the following is true - KEY TERM 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? - KEY TERM 60.6 million
non-controlling interest - KEY TERM 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? - KEY TERM 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 - KEY TERM 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 - KEY
TERM apply a weighted average interest rate times the average debt balance over the
course of the year
enterprise (transaction) value represents the: - KEY TERM 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 - KEY TERM 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:
