Page |1
Wall Street Prep Premium Exam
2025|brand new Actual exam with 100%
verified Questions & correct Answers
|Already Graded A+
What is generally not considered to be a pre-tax non-recurring (unusual or
infrequent) item? - correct-answer-Extraordinary gains/losses
enterprise (transaction) value represents the: - correct-answer-value of all capital
invested in a business
A debt holder would be primarily concerned with which of the following
multiples?
I. Enterprise (Transaction) Value / EBITDA
II. Price/Earnings
III. Enterprise (Transaction) Value / Sales - correct-answer-1 and 3 only
, Page |2
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400
million shares outstanding. The company has net debt of $300 million. After
building an earnings model for Company X, you have projected free cash flow for
each year through 2020 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow 110 120 150 170 200 250 280
You estimate that the weighted average cost of capital (WACC) for Company X is
10% and assume that free cash flows grow in perpetuity at 3.0% annually beyond
2020, the final projected year. Estimate the present value of the projected free
cash flows through 2020, discounted at the stated WACC. Assume all cash flows
are generated at the end of the year (i.e., no mid-year adjustment): - correct-
answer-837 million
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400
million shares outstanding. The
company has net debt of $300 million. After building an earnings model for
Company X, you have projected free
cash flow for each year through 2014 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow 110 120 150 170 200 250 280
Wall Street Prep Premium Exam
2025|brand new Actual exam with 100%
verified Questions & correct Answers
|Already Graded A+
What is generally not considered to be a pre-tax non-recurring (unusual or
infrequent) item? - correct-answer-Extraordinary gains/losses
enterprise (transaction) value represents the: - correct-answer-value of all capital
invested in a business
A debt holder would be primarily concerned with which of the following
multiples?
I. Enterprise (Transaction) Value / EBITDA
II. Price/Earnings
III. Enterprise (Transaction) Value / Sales - correct-answer-1 and 3 only
, Page |2
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400
million shares outstanding. The company has net debt of $300 million. After
building an earnings model for Company X, you have projected free cash flow for
each year through 2020 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow 110 120 150 170 200 250 280
You estimate that the weighted average cost of capital (WACC) for Company X is
10% and assume that free cash flows grow in perpetuity at 3.0% annually beyond
2020, the final projected year. Estimate the present value of the projected free
cash flows through 2020, discounted at the stated WACC. Assume all cash flows
are generated at the end of the year (i.e., no mid-year adjustment): - correct-
answer-837 million
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400
million shares outstanding. The
company has net debt of $300 million. After building an earnings model for
Company X, you have projected free
cash flow for each year through 2014 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow 110 120 150 170 200 250 280
