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Wallstreet Prep Valuation Questions

Wallstreet Prep Valuation Questions

Discounted Cash Flow Analysis Exam Wallstreet prep Questions and Answers 2024

Could you explain the concept of present value and how it relates to company valuations? The present value concept is based on the premise that "a dollar in the present is worth more than a dollar in the future" due to the time value of money. The reason being money currently in possession has the potential to earn interest by being invested today. For intrinsic valuation methods, the value of a company will be equal to the sum of the present value of all the future cash flows it generates. ...

Wallstreet Prep Valuation Questions and Answers 2024.

Transaction Comps and LBO Modeling Exam Wallstreet Prep – Questions With Answers Latest Updated 2024/2025 Graded A+. What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? - ANSWER>>>Extraordinary gains/losses what is false about depreciation and amortization - ANSWER>>>D&A may be classified within interest expense Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 mill...

What does "hold(ing) period" mean in private equity? : Period of time that it takes a private equity firm to acquire a company using cash raised from private investors Period of time that a private equity firm holds on to LP assets before returning capital to investors Period of time that a private equity firm owns shares in a publicly-traded company before taking it private Period of time that a private equity firm owns an asset before selling it Period of time that a private equ...

Financial Modeling Exam Wallstreet Prep Which are the two points that identify the break even unit sales? - ANS 1. Where the Sales revenue line crosses the Total costs line 2. Where accounting profit hits zero and changes from negative to positive What is the formula for accounting profit? - ANS Revenue - Total Costs, because Describe and Explain the relationship between NPV and Year 1 Unit Sales - ANS They have a direct relationship because PV of Net cash flows rises as year 1 u...

Discounted Cash Flow Analysis Exam Wallstreet prep Questions and Answers 2024