Transaction Comps
Modeling Wall Street
Prep Exam
, What is generally not considered to be a pre-tax non-recurring (unusual or infrequent)
item? - CORRECT ANSWERS-Extraordinary gains/losses
what is false about depreciation and amortization - CORRECT ANSWERS-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 - CORRECT ANSWERS-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 - CORRECT ANSWERS-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 - CORRECT
ANSWERS-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 -
CORRECT ANSWERS-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?
- CORRECT ANSWERS-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 - CORRECT ANSWERS-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? - CORRECT ANSWERS-65.7 days
Which of the following is true - CORRECT ANSWERS-Coca Cola's brand name is not
reflected as an intangible asset on its balance sheet
Modeling Wall Street
Prep Exam
, What is generally not considered to be a pre-tax non-recurring (unusual or infrequent)
item? - CORRECT ANSWERS-Extraordinary gains/losses
what is false about depreciation and amortization - CORRECT ANSWERS-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 - CORRECT ANSWERS-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 - CORRECT ANSWERS-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 - CORRECT
ANSWERS-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 -
CORRECT ANSWERS-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?
- CORRECT ANSWERS-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 - CORRECT ANSWERS-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? - CORRECT ANSWERS-65.7 days
Which of the following is true - CORRECT ANSWERS-Coca Cola's brand name is not
reflected as an intangible asset on its balance sheet