1 | Page
Wall Street Prep Premium Exam:Transaction
Comps Modeling Wall Street Prep Exam
Questions and Answers
What is generally not considered to be a pre-tax non-recurring
(unusual or infrequent) item?
Ans: Extraordinary gains/losses
what is false about depreciation and amortization
Ans: 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
Ans: 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
Ans: 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
Ans: 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
© 2025 All rights reserved
, 2 | Page
Ans: 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?
Ans: 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
Ans: 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?
Ans: 65.7 days
Which of the following is true
Ans: 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?
Ans: 60.6 million
© 2025 All rights reserved
Wall Street Prep Premium Exam:Transaction
Comps Modeling Wall Street Prep Exam
Questions and Answers
What is generally not considered to be a pre-tax non-recurring
(unusual or infrequent) item?
Ans: Extraordinary gains/losses
what is false about depreciation and amortization
Ans: 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
Ans: 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
Ans: 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
Ans: 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
© 2025 All rights reserved
, 2 | Page
Ans: 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?
Ans: 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
Ans: 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?
Ans: 65.7 days
Which of the following is true
Ans: 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?
Ans: 60.6 million
© 2025 All rights reserved
