Wall street prep premium exam 2023 questions and answers 100

Wall Street Prep Premium Exam 2024 n n n n n




Questions and Answers 100% Verified!!
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What is generally not considered to be a pre-tax non-recurring (unusual or infrequent)
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item? - ANSWER-Extraordinary gains/losses
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what is false about depreciation and amortization - ANSWER-D&A may be classified
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within interest expense
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Company X's current assets increased by $40 million from 2007-2008 while the
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companies current liabilities increased by $25 million over the same period. the cash
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impact of the change in working capital was - ANSWER-a decrease of 15 million
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the final component of an earnings projection model is calculating interest expense. the
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ncalculation may create a circular reference because - ANSWER-interest expense
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naffects net income, which affects FCF, which affects the amount of debt a company
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npays down, which, in turn affects the interest expense, hence the circular reference
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a 10-q financial filing has all of the following characteristics except - ANSWER-issued
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four times a year.
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Depreciation Expense found in the SG&A line of the income statement for a n n n n n n n n n n n n



manufacturing firm would most likely be attributable to which of the following -
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ANSWER-computers used by the accounting department
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If a company has projected revenues of $10 billion, a gross profit margin of 65%, and
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nprojected SG&A expenses of $2billion, what is the company's operating (EBIT) margin?
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n- ANSWER-45%
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A company has the following information, 1. 2014 revenues of $5 billion,2013 Accounts
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receivable of $400 million, 2014 accounts receivable of $600 million, what are the days
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sales outstanding - ANSWER-36.5
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A company has the following information:
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• 2014 Revenues of $8 billion
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• 2014 COGS of $5 billion
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• 2013 Accounts receivable of $400 million
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• 2014 Accounts receivable of $600 million
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• 2013 Inventories of $1 billion
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• 2014 Inventories of $800 million
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• 2013 Accounts payable of $250 million
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• 2014 Accounts payable of $300 million
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What are the inventory days for the company? - ANSWER-65.7 days
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, Which of the following is true - ANSWER-Coca Cola's brand name is not reflected as an
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intangible asset on its balance sheet
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A company has the following information:
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• 2014 share repurchase plan of $4 billion
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• Average share price of $60 for the year 2013
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• Expected EPS growth for 2014 of 10%
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What should the number of shares repurchased by the company be in your financial
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model? - ANSWER-60.6 million
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non-controlling interest - ANSWER-is an expense on the income statement and equity o n n n n n n n n n n n n



the balance sheet
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A company has the following information:
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• 2013 retained earnings balance of $12 billion
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• Net income of $3.5 billion in 2014
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• Capex of $200 million in 2014
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• Preferred dividends of $100 million in 2014
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• Common dividends of $400 million in 2014
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What is the retained earnings balance at the end of 2014? - ANSWER-15 billion
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in order to find out how much cash is available to pay down short term debt, such as
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nrevolving credit line, you must take - ANSWER-beginning cash balance + pre-debt cash
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nflows - min. cash balance - required principal payments of LT and other debt
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to calculate interest expense in the future, you should do which of the following -
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nANSWER-apply a weighted average interest rate times the average debt balance over n n n n n n n n n n n



nthe course of the year n n n n




enterprise (transaction) value represents the: - ANSWER-value of all capital invested in
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a business
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A debt holder would be primarily concerned with which of the following multiples?
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I. Enterprise (Transaction) Value / EBITDA
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II. Price/Earnings
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III. Enterprise (Transaction) Value / Sales - ANSWER-1 and 3 only
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On January 1, 2014, shares of Company X trade at $6.50 per share, with 400 million
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shares outstanding. The company has net debt of $300 million. After building an
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earnings model for Company X, you have projected free cash flow for each year
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through 2020 as follows:
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Year 2014 2015 2016 2017 2018 2019 2020
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Free Cash Flow 110 120 150 170 200 250 280
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