Wall Street Prep Premium Exam
What is commonly now not taken into consideration to be a pre-tax non-routine (unusual or
rare) item? - ANSExtraordinary gains/losses
what's fake approximately depreciation and amortization - ANSD&A can be classified within
hobby expense
Company X's modern property accelerated with the aid of $forty million from 2007-2008
whilst the corporations contemporary liabilities increased with the aid of $25 million over the
identical duration. The coins impact of the change in operating capital turned into - ANSa
lower of 15 million
the very last thing of an earnings projection version is calculating hobby price. The
calculation can also create a round reference because - ANSinterest expense influences
internet income, which influences FCF, which affects the quantity of debt a agency will pay
down, which, in flip impacts the hobby price, consequently the circular reference
a 10-q monetary submitting has all the following traits besides - ANSissued 4 instances a yr.
Depreciation Expense observed inside the SG&A line of the income announcement for a
production company could most probable be as a consequence of which of the subsequent -
ANScomputers utilized by the accounting branch
If a organisation has projected revenues of $10 billion, a gross income margin of 65%, and
projected SG&A costs of $2billion, what's the corporation's working (EBIT) margin? -
ANS45%
A organization has the subsequent statistics, 1. 2014 sales of $5 billion,2013 Accounts
receivable of $400 million, 2014 money owed receivable of $six hundred million, what are
the times sales fantastic - ANS36.5
A company has the following facts:
• 2014 Revenues of $eight billion
• 2014 COGS of $five billion
• 2013 Accounts receivable of $four hundred 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 $three hundred million
What are the stock days for the enterprise? - ANS65.7 days
Which of the following is true - ANSCoca Cola's emblem name is not meditated as an
intangible asset on its balance sheet
, A company has the subsequent statistics:
• 2014 proportion repurchase plan of $four billion
• Average share charge of $60 for the year 2013
• Expected EPS boom for 2014 of 10%
What must the variety of stocks repurchased with the aid of the business enterprise be for
your economic model? - ANS60.6 million
non-controlling interest - ANSis an price at the income declaration and fairness o the stability
sheet
A corporation has the subsequent information:
• 2013 retained income balance of $12 billion
• Net earnings of $3.5 billion in 2014
• Capex of $200 million in 2014
• Preferred dividends of $one hundred million in 2014
• Common dividends of $400 million in 2014
What is the retained income balance at the cease of 2014? - ANS15 billion
a good way to discover how plenty cash is to be had to pay down brief term debt, consisting
of revolving credit line, you ought to take - ANSbeginning coins balance + pre-debt cash
flows - min. Cash balance - required predominant bills of LT and other debt
to calculate interest cost inside the destiny, you need to do which of the subsequent -
ANSapply a weighted common hobby price times the common debt balance over the path of
the 12 months
organisation (transaction) price represents the: - ANSvalue of all capital invested in a
enterprise
A debt holder would be in general involved with which of the following multiples?
I. Enterprise (Transaction) Value / EBITDA
II. Price/Earnings
III. Enterprise (Transaction) Value / Sales - ANS1 and 3 only
On January 1, 2014, shares of Company X change at $6.50 in line with share, with four
hundred million stocks fantastic. The employer has internet debt of $300 million. After
building an earnings model for Company X, you have projected unfastened coins go with the
flow for each 12 months thru 2020 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow a hundred and ten a hundred and twenty one hundred fifty a hundred and
seventy 200 250 280
You estimate that the weighted common price of capital (WACC) for Company X is 10% and
anticipate that unfastened coins flows develop in perpetuity at three.0% yearly beyond 2020,
the final projected year. Estimate the prevailing value of the projected unfastened cash flows
What is commonly now not taken into consideration to be a pre-tax non-routine (unusual or
rare) item? - ANSExtraordinary gains/losses
what's fake approximately depreciation and amortization - ANSD&A can be classified within
hobby expense
Company X's modern property accelerated with the aid of $forty million from 2007-2008
whilst the corporations contemporary liabilities increased with the aid of $25 million over the
identical duration. The coins impact of the change in operating capital turned into - ANSa
lower of 15 million
the very last thing of an earnings projection version is calculating hobby price. The
calculation can also create a round reference because - ANSinterest expense influences
internet income, which influences FCF, which affects the quantity of debt a agency will pay
down, which, in flip impacts the hobby price, consequently the circular reference
a 10-q monetary submitting has all the following traits besides - ANSissued 4 instances a yr.
Depreciation Expense observed inside the SG&A line of the income announcement for a
production company could most probable be as a consequence of which of the subsequent -
ANScomputers utilized by the accounting branch
If a organisation has projected revenues of $10 billion, a gross income margin of 65%, and
projected SG&A costs of $2billion, what's the corporation's working (EBIT) margin? -
ANS45%
A organization has the subsequent statistics, 1. 2014 sales of $5 billion,2013 Accounts
receivable of $400 million, 2014 money owed receivable of $six hundred million, what are
the times sales fantastic - ANS36.5
A company has the following facts:
• 2014 Revenues of $eight billion
• 2014 COGS of $five billion
• 2013 Accounts receivable of $four hundred 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 $three hundred million
What are the stock days for the enterprise? - ANS65.7 days
Which of the following is true - ANSCoca Cola's emblem name is not meditated as an
intangible asset on its balance sheet
, A company has the subsequent statistics:
• 2014 proportion repurchase plan of $four billion
• Average share charge of $60 for the year 2013
• Expected EPS boom for 2014 of 10%
What must the variety of stocks repurchased with the aid of the business enterprise be for
your economic model? - ANS60.6 million
non-controlling interest - ANSis an price at the income declaration and fairness o the stability
sheet
A corporation has the subsequent information:
• 2013 retained income balance of $12 billion
• Net earnings of $3.5 billion in 2014
• Capex of $200 million in 2014
• Preferred dividends of $one hundred million in 2014
• Common dividends of $400 million in 2014
What is the retained income balance at the cease of 2014? - ANS15 billion
a good way to discover how plenty cash is to be had to pay down brief term debt, consisting
of revolving credit line, you ought to take - ANSbeginning coins balance + pre-debt cash
flows - min. Cash balance - required predominant bills of LT and other debt
to calculate interest cost inside the destiny, you need to do which of the subsequent -
ANSapply a weighted common hobby price times the common debt balance over the path of
the 12 months
organisation (transaction) price represents the: - ANSvalue of all capital invested in a
enterprise
A debt holder would be in general involved with which of the following multiples?
I. Enterprise (Transaction) Value / EBITDA
II. Price/Earnings
III. Enterprise (Transaction) Value / Sales - ANS1 and 3 only
On January 1, 2014, shares of Company X change at $6.50 in line with share, with four
hundred million stocks fantastic. The employer has internet debt of $300 million. After
building an earnings model for Company X, you have projected unfastened coins go with the
flow for each 12 months thru 2020 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow a hundred and ten a hundred and twenty one hundred fifty a hundred and
seventy 200 250 280
You estimate that the weighted common price of capital (WACC) for Company X is 10% and
anticipate that unfastened coins flows develop in perpetuity at three.0% yearly beyond 2020,
the final projected year. Estimate the prevailing value of the projected unfastened cash flows
