M&A Modeling Exam Answers (Graded A) – Wall Street Prep 2026 | Latest Version

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M&A Modeling Exam Answers from Wall
Street Prep GRADED A LATEST VERSION
2026




2026 2027 GRADED A+

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Section I — M&A Basics (1–10)
1. The primary goal of M&A modeling is to:
A) Forecast revenue only
B) Assess financial impacts of a proposed acquisition
C) Prepare GAAP accounting schedules
D) Determine tax holidays
Answer: B

2. In an acquisition, “synergies” refer to:
A) Additional value created by cost savings or revenue gains
B) Market share dilution
C) Dividend payments
D) Industry averages
Answer: A

3. A “friendly” acquisition means:
A) Both buyer and seller support the deal
B) Hostile takeover
C) Only debt is used
D) Regulatory denial
Answer: A

4. A “hostile” takeover occurs when:
A) Buyer makes a direct offer to shareholders despite management opposition
B) Seller initiates the process
C) No legal process is involved
D) Regulatory approval is guaranteed
Answer: A

5. Consideration in an acquisition can include:
A) Cash, stock, or a mix
B) Only cash
C) Only debt
D) Only services
Answer: A

6. Enterprise Value (EV) equals:
A) Equity Value + Net Debt
B) Market Cap × EBITDA
C) Revenue × Multiple



2026 2027 GRADED A+