WALL STREET PREP PREMIUM EXAM WITH
VERIFIED ANSWERS
1. to calculate interest expense in the future, you should do
which of the
following: apply a weighted average interest rate times the
average debt balance
over the course of the year
2. enterprise (transaction) value represents the:: value of all capita
invested in
a business
What is generally not considered to be a pre-tax non-recurring
(unusual or
infrequent) item?: Extraordinary gains/losses
what is false about depreciation and amortization: D&A may be
classified
within interest expense
1/8
,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: a
decrease of
15 million
3. the final component of an earnings projection model is
calculating interest
expense. the calculation may create a circular reference because:
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
2/8
,4. a 10-q financial filing has all of the following characteristics
except: issued
four times a year.
5. 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: computers used by the accounting department
6. 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?: 45%
7. A company has the following information, 1. 2014 revenues of
$5 billion,2013 Accounts receivable of $400 million, 2014
3/8
, accounts receivable of $600 million, what are the days sales
outstanding: 36.5
8. 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?: 65.7 days
9. Which of the following is true: Coca Cola's brand name is not
reflected as an
4/8
VERIFIED ANSWERS
1. to calculate interest expense in the future, you should do
which of the
following: apply a weighted average interest rate times the
average debt balance
over the course of the year
2. enterprise (transaction) value represents the:: value of all capita
invested in
a business
What is generally not considered to be a pre-tax non-recurring
(unusual or
infrequent) item?: Extraordinary gains/losses
what is false about depreciation and amortization: D&A may be
classified
within interest expense
1/8
,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: a
decrease of
15 million
3. the final component of an earnings projection model is
calculating interest
expense. the calculation may create a circular reference because:
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
2/8
,4. a 10-q financial filing has all of the following characteristics
except: issued
four times a year.
5. 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: computers used by the accounting department
6. 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?: 45%
7. A company has the following information, 1. 2014 revenues of
$5 billion,2013 Accounts receivable of $400 million, 2014
3/8
, accounts receivable of $600 million, what are the days sales
outstanding: 36.5
8. 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?: 65.7 days
9. Which of the following is true: Coca Cola's brand name is not
reflected as an
4/8
