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Transaction Comps Modeling Wall Street
Prep Exam 2026 GRADED A+
Topics Covered
1. Identifying Comparable Transactions
2. Transaction Multiples (EV/EBITDA, EV/Revenue, etc.)
3. Adjustments & Normalization
4. Calculations for Implied Enterprise and Equity Value
5. Interpretation & Application
Section I – Basic Concepts (1–10)
1. Precedent transaction analysis is used primarily to estimate:
A) A company’s liquidation value
2026 2027 GRADED A+
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B) Relative valuation based on acquisition multiples
C) DCF cash flows
D) Market risk premium
Answer: B
2. In transaction comps, enterprise value is derived from:
A) Purchase price paid by acquirer
B) Market cap only
C) Net income
D) Free cash flow
Answer: A
3. A control premium represents:
A) The additional amount an acquirer is willing to pay for control
B) Dividend payments
C) Debt interest
D) Operational cash flows
Answer: A
4. A strategic buyer typically pays:
A) Lower multiples than financial sponsors
B) Higher multiples due to synergies
C) Discounts for synergies
D) Same as minority investors
Answer: B
5. Common transaction multiples include:
A) EV/EBITDA, EV/Revenue
B) EPS growth
C) Discount rate
D) Beta
Answer: A
6. Normalizing transactions removes:
A) One-time gains or losses
B) Recurring revenue
C) Debt covenants
D) Pension expenses only
Answer: A
7. Enterprise Value includes:
A) Equity value + net debt
B) Equity value – net debt
C) Net income
D) Depreciation
Answer: A
2026 2027 GRADED A+
Transaction Comps Modeling Wall Street
Prep Exam 2026 GRADED A+
Topics Covered
1. Identifying Comparable Transactions
2. Transaction Multiples (EV/EBITDA, EV/Revenue, etc.)
3. Adjustments & Normalization
4. Calculations for Implied Enterprise and Equity Value
5. Interpretation & Application
Section I – Basic Concepts (1–10)
1. Precedent transaction analysis is used primarily to estimate:
A) A company’s liquidation value
2026 2027 GRADED A+
, 2|Page
B) Relative valuation based on acquisition multiples
C) DCF cash flows
D) Market risk premium
Answer: B
2. In transaction comps, enterprise value is derived from:
A) Purchase price paid by acquirer
B) Market cap only
C) Net income
D) Free cash flow
Answer: A
3. A control premium represents:
A) The additional amount an acquirer is willing to pay for control
B) Dividend payments
C) Debt interest
D) Operational cash flows
Answer: A
4. A strategic buyer typically pays:
A) Lower multiples than financial sponsors
B) Higher multiples due to synergies
C) Discounts for synergies
D) Same as minority investors
Answer: B
5. Common transaction multiples include:
A) EV/EBITDA, EV/Revenue
B) EPS growth
C) Discount rate
D) Beta
Answer: A
6. Normalizing transactions removes:
A) One-time gains or losses
B) Recurring revenue
C) Debt covenants
D) Pension expenses only
Answer: A
7. Enterprise Value includes:
A) Equity value + net debt
B) Equity value – net debt
C) Net income
D) Depreciation
Answer: A
2026 2027 GRADED A+
