Wall Street Prep Premium
Exam:Transaction Comps Modeling Wall
Street Prep Exam 2025
Whatdisdgenerallydnotdconsidereddtodbedadpre-taxdnon-
recurringd(unusualdordinfrequent)ditem?d-danswerExtraordinarydgains/losses
whatdisdfalsedaboutddepreciationdanddamortizationd-
answerD&Admaydbedclassifieddwithindinterestdexpense
d
CompanydX'sdcurrentdassetsdincreaseddbyd$40dmilliondfromd2007-
2008dwhiledthedcompaniesdcurrentdliabilitiesdincreaseddbyd$25dmilliondoverdthedsamedperio
d.dthedcashdimpactdofdthedchangedindworkingdcapitaldwasd-dansweraddecreasedofd15dmillion
thedfinaldcomponentdofdandearningsdprojectiondmodeldisdcalculatingdinterestdexpense.dthedc
alculationdmaydcreatedadcirculardreferencedbecaused-
answerinterestdexpensedaffectsdnetdincome,dwhichdaffectsdFCF,dwhichdaffectsdthedamount
d
,ofddebtdadcompanydpaysddown,dwhich,dindturndaffectsdthedinterestdexpense,dhencedthedcirc
d
ulardreference
ad10-qdfinancialdfilingdhasdalldofdthedfollowingdcharacteristicsdexceptd-
answerissueddfourdtimesdadyear.
d
DepreciationdExpensedfounddindthedSG&Adlinedofdthedincomedstatementdfordadmanufacturin
gdfirmdwoulddmostdlikelydbedattributabledtodwhichdofdthedfollowingd-
answercomputersduseddbydthedaccountingddepartment
d
Ifdadcompanydhasdprojecteddrevenuesdofd$10dbillion,dadgrossdprofitdmargindofd65%,danddproj
ecteddSG&Adexpensesdofd$2billion,dwhatdisdthedcompany'sdoperatingd(EBIT)dmargin?d-
answer45%
d
Adcompanydhasdthedfollowingdinformation,d1.d2014drevenuesdofd$5dbillion,2013dAccountsdr
eceivabledofd$400dmillion,d2014daccountsdreceivabledofd$600dmillion,dwhatdaredtheddaysdsal
esdoutstandingd-danswer36.5
Adcompanydhasdthedfollowingdinformation:
, •d2014dRevenuesdofd$8dbillion
•d2014dCOGSdofd$5dbillion
•d2013dAccountsdreceivabledofd$400dmillion
•d2014dAccountsdreceivabledofd$600dmillion
•d2013dInventoriesdofd$1dbillion
•d2014dInventoriesdofd$800dmillion
•d2013dAccountsdpayabledofd$250dmillion
•d2014dAccountsdpayabledofd$300dmillion
Whatdaredthedinventoryddaysdfordthedcompany?d-danswer65.7ddays
Whichdofdthedfollowingdisdtrued-
answerCocadCola'sdbranddnamedisdnotdreflecteddasdandintangibledassetdonditsdbalancedshe
d
et
Adcompanydhasdthedfollowingdinformation:
•d2014dsharedrepurchasedplandofd$4dbillion
•dAveragedsharedpricedofd$60dfordthedyeard2013
•dExpecteddEPSdgrowthdford2014dofd10%
Exam:Transaction Comps Modeling Wall
Street Prep Exam 2025
Whatdisdgenerallydnotdconsidereddtodbedadpre-taxdnon-
recurringd(unusualdordinfrequent)ditem?d-danswerExtraordinarydgains/losses
whatdisdfalsedaboutddepreciationdanddamortizationd-
answerD&Admaydbedclassifieddwithindinterestdexpense
d
CompanydX'sdcurrentdassetsdincreaseddbyd$40dmilliondfromd2007-
2008dwhiledthedcompaniesdcurrentdliabilitiesdincreaseddbyd$25dmilliondoverdthedsamedperio
d.dthedcashdimpactdofdthedchangedindworkingdcapitaldwasd-dansweraddecreasedofd15dmillion
thedfinaldcomponentdofdandearningsdprojectiondmodeldisdcalculatingdinterestdexpense.dthedc
alculationdmaydcreatedadcirculardreferencedbecaused-
answerinterestdexpensedaffectsdnetdincome,dwhichdaffectsdFCF,dwhichdaffectsdthedamount
d
,ofddebtdadcompanydpaysddown,dwhich,dindturndaffectsdthedinterestdexpense,dhencedthedcirc
d
ulardreference
ad10-qdfinancialdfilingdhasdalldofdthedfollowingdcharacteristicsdexceptd-
answerissueddfourdtimesdadyear.
d
DepreciationdExpensedfounddindthedSG&Adlinedofdthedincomedstatementdfordadmanufacturin
gdfirmdwoulddmostdlikelydbedattributabledtodwhichdofdthedfollowingd-
answercomputersduseddbydthedaccountingddepartment
d
Ifdadcompanydhasdprojecteddrevenuesdofd$10dbillion,dadgrossdprofitdmargindofd65%,danddproj
ecteddSG&Adexpensesdofd$2billion,dwhatdisdthedcompany'sdoperatingd(EBIT)dmargin?d-
answer45%
d
Adcompanydhasdthedfollowingdinformation,d1.d2014drevenuesdofd$5dbillion,2013dAccountsdr
eceivabledofd$400dmillion,d2014daccountsdreceivabledofd$600dmillion,dwhatdaredtheddaysdsal
esdoutstandingd-danswer36.5
Adcompanydhasdthedfollowingdinformation:
, •d2014dRevenuesdofd$8dbillion
•d2014dCOGSdofd$5dbillion
•d2013dAccountsdreceivabledofd$400dmillion
•d2014dAccountsdreceivabledofd$600dmillion
•d2013dInventoriesdofd$1dbillion
•d2014dInventoriesdofd$800dmillion
•d2013dAccountsdpayabledofd$250dmillion
•d2014dAccountsdpayabledofd$300dmillion
Whatdaredthedinventoryddaysdfordthedcompany?d-danswer65.7ddays
Whichdofdthedfollowingdisdtrued-
answerCocadCola'sdbranddnamedisdnotdreflecteddasdandintangibledassetdonditsdbalancedshe
d
et
Adcompanydhasdthedfollowingdinformation:
•d2014dsharedrepurchasedplandofd$4dbillion
•dAveragedsharedpricedofd$60dfordthedyeard2013
•dExpecteddEPSdgrowthdford2014dofd10%
