WALL STREET PREP PREMIUM
EXAM:TRANSACTION COMPS
MODELING WALL STREET PREP EXAM
QUESTIONS WITH CORRECT ANSWERS
What Yis Ygenerally Ynot Yconsidered Yto Ybe Ya Ypre-tax Ynon-recurring Y(unusual Yor Yinfrequent)
Yitem? Y- Ycorrect Yanswer-Extraordinary Ygains/losses
what Yis Yfalse Yabout Ydepreciation Yand Yamortization Y- Ycorrect
Yanswer- YD&A Ymay Ybe Yclassified Ywithin Yinterest Yexpense
Company YX's Ycurrent Y assets Y increased Yby Y $40 Ymillion Yfrom Y2007-
2008 Ywhile Ythe Ycompanies Ycurrent Yliabilities Yincreased Yby Y$25 Ymillion Yover Ythe Ysame Yperiod.
Ythe Ycash Yi Ympact Yof Ythe Ychange Yin Yworking Ycapital Ywas Y- Ycorrect Yanswer-a Ydecrease Yof Y15
Ymillion
the Yfinal Ycomponent Yof Yan Yearnings Yprojection Ymodel Yis Ycalculating Yinterest Yexpense. Ythe
Ycalculation Yma Y y Ycreate Ya Ycircular Yreference Ybecause Y- Ycorrect Yanswer-
interest Yexpense Yaffects Ynet Yincome, Ywhich Yaffects YFCF, Ywhich Yaffects Ythe Yamount Yof Ydebt Ya
Ycompany Ypa Yys Ydown, Ywhich, Yin Yturn Yaffects Ythe Yinterest Yexpense, Yhence Ythe Ycircular
Yreference
a Y10-q Yfinancial Yfiling Yhas Yall Yof Ythe Yfollowing Ycharacteristics Yexcept Y- Ycorrect
Yanswer- Yissued Yfour Ytimes Ya Yyear.
Depreciation YExpense Yfound Yin Ythe YSG&AHline Yof Ythe Yincome Ystatement Yfor Ya Ymanufacturing
Yfirm Ywould Ymost Ylikely Ybe Yattributable Yto Ywhich Yof Ythe Yfollowing Y- Ycorrect Yanswer-
computers Yused Yby Y the Yaccounting Ydepartment
, If Ya Ycompany Yhas Yprojected Yrevenues Yof Y$10 Ybillion, Ya Ygross Yprofit Ymargin Yof Y65%, Yand
Yprojected YSG&A Yexpenses Yof Y$2billion, Ywhat Yis Ythe Ycompany's Yoperating Y(EBIT) Ymargin? Y- Ycorrect
Yanswer-45%
A Ycompany Yhas Ythe Yfollowing Yinformation, Y1. Y2014 Yrevenues Yof Y$5 Ybillion,2013 YAccounts
Yreceivable Yof Y$ Y400 Ymillion, Y2014 Yaccounts Yreceivable Yof Y$600 Ymillion, Ywhat Yare Ythe Ydays
Ysales Youtstanding Y-
correct Y answer-36.5
EXAM:TRANSACTION COMPS
MODELING WALL STREET PREP EXAM
QUESTIONS WITH CORRECT ANSWERS
What Yis Ygenerally Ynot Yconsidered Yto Ybe Ya Ypre-tax Ynon-recurring Y(unusual Yor Yinfrequent)
Yitem? Y- Ycorrect Yanswer-Extraordinary Ygains/losses
what Yis Yfalse Yabout Ydepreciation Yand Yamortization Y- Ycorrect
Yanswer- YD&A Ymay Ybe Yclassified Ywithin Yinterest Yexpense
Company YX's Ycurrent Y assets Y increased Yby Y $40 Ymillion Yfrom Y2007-
2008 Ywhile Ythe Ycompanies Ycurrent Yliabilities Yincreased Yby Y$25 Ymillion Yover Ythe Ysame Yperiod.
Ythe Ycash Yi Ympact Yof Ythe Ychange Yin Yworking Ycapital Ywas Y- Ycorrect Yanswer-a Ydecrease Yof Y15
Ymillion
the Yfinal Ycomponent Yof Yan Yearnings Yprojection Ymodel Yis Ycalculating Yinterest Yexpense. Ythe
Ycalculation Yma Y y Ycreate Ya Ycircular Yreference Ybecause Y- Ycorrect Yanswer-
interest Yexpense Yaffects Ynet Yincome, Ywhich Yaffects YFCF, Ywhich Yaffects Ythe Yamount Yof Ydebt Ya
Ycompany Ypa Yys Ydown, Ywhich, Yin Yturn Yaffects Ythe Yinterest Yexpense, Yhence Ythe Ycircular
Yreference
a Y10-q Yfinancial Yfiling Yhas Yall Yof Ythe Yfollowing Ycharacteristics Yexcept Y- Ycorrect
Yanswer- Yissued Yfour Ytimes Ya Yyear.
Depreciation YExpense Yfound Yin Ythe YSG&AHline Yof Ythe Yincome Ystatement Yfor Ya Ymanufacturing
Yfirm Ywould Ymost Ylikely Ybe Yattributable Yto Ywhich Yof Ythe Yfollowing Y- Ycorrect Yanswer-
computers Yused Yby Y the Yaccounting Ydepartment
, If Ya Ycompany Yhas Yprojected Yrevenues Yof Y$10 Ybillion, Ya Ygross Yprofit Ymargin Yof Y65%, Yand
Yprojected YSG&A Yexpenses Yof Y$2billion, Ywhat Yis Ythe Ycompany's Yoperating Y(EBIT) Ymargin? Y- Ycorrect
Yanswer-45%
A Ycompany Yhas Ythe Yfollowing Yinformation, Y1. Y2014 Yrevenues Yof Y$5 Ybillion,2013 YAccounts
Yreceivable Yof Y$ Y400 Ymillion, Y2014 Yaccounts Yreceivable Yof Y$600 Ymillion, Ywhat Yare Ythe Ydays
Ysales Youtstanding Y-
correct Y answer-36.5
