2026 transaction comps modeling wall street
,If a company has projected revenues of $10 billion, a gross profit margin of
65%, and projected SGCA expenses of $2billion, what is the company's
operating (EBIT) margin? - ✔✔✔ANSWER-45%
A company has the following information, 1. 2014 revenues of $5 billion,2013
Accounts receivable of $400 million, 2014 accounts receivable of $600
million, what are the days sales outstanding -
✔✔✔ANSWER-36.5
, 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 - ✔✔✔ANSWER-a decrease
of 15 million
the final component of an earnings projection model is calculating interest expense.
the calculation may create a circular reference because - ✔✔✔ANSWER-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
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-
DCA may be classified within interest expense
a 10-q financial filing has all of the following characteristics except -
✔✔✔ANSWER-issued four times a year.
Depreciation Expense found in the SGCA line of the income statement for a
manufacturing firm would most likely be attributable to which of the following -
✔✔✔ANSWER-computers used by the accounting department
,If a company has projected revenues of $10 billion, a gross profit margin of
65%, and projected SGCA expenses of $2billion, what is the company's
operating (EBIT) margin? - ✔✔✔ANSWER-45%
A company has the following information, 1. 2014 revenues of $5 billion,2013
Accounts receivable of $400 million, 2014 accounts receivable of $600
million, what are the days sales outstanding -
✔✔✔ANSWER-36.5
, 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 - ✔✔✔ANSWER-a decrease
of 15 million
the final component of an earnings projection model is calculating interest expense.
the calculation may create a circular reference because - ✔✔✔ANSWER-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
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-
DCA may be classified within interest expense
a 10-q financial filing has all of the following characteristics except -
✔✔✔ANSWER-issued four times a year.
Depreciation Expense found in the SGCA line of the income statement for a
manufacturing firm would most likely be attributable to which of the following -
✔✔✔ANSWER-computers used by the accounting department
