WALL STREET PREP TRADING COMPS &
TRANSACTION COMPS MODELING EXAM Q&A
2026/2027 LATEST UPDATE
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
A company has the following information:
1
,• 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? - ✔✔✔ANSWER-65.7
days
Which of the following is true - ✔✔✔ANSWER-Coca Cola's brand
name is not reflected as an intangible asset on its balance sheet
A company has the following information:
• 2014 share repurchase plan of $4 billion
• Average share price of $60 for the year 2013
• Expected EPS growth for 2014 of 10%
2
, What should the number of shares repurchased by the company be in
your financial model? - ✔✔✔ANSWER-60.6 million non-controlling
interest - ✔✔✔ANSWER-is an expense on the income statement and
equity o the balance sheet
A company has the following information:
• 2013 retained earnings balance of $12 billion
• Net income of $3.5 billion in 2014
• Capex of $200 million in 2014
• Preferred dividends of $100 million in 2014
• Common dividends of $400 million in 2014
What is the retained earnings balance at the end of 2014? -
✔ ✔✔ANSWER-15 billion
in order to find out how much cash is available to pay down short term
debt, such as revolving credit line, you must take -
✔✔✔ANSWER-beginning cash balance + pre-debt cash flows - min.
cash balance - required principal payments of LT and other debt
3
TRANSACTION COMPS MODELING EXAM Q&A
2026/2027 LATEST UPDATE
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
A company has the following information:
1
,• 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? - ✔✔✔ANSWER-65.7
days
Which of the following is true - ✔✔✔ANSWER-Coca Cola's brand
name is not reflected as an intangible asset on its balance sheet
A company has the following information:
• 2014 share repurchase plan of $4 billion
• Average share price of $60 for the year 2013
• Expected EPS growth for 2014 of 10%
2
, What should the number of shares repurchased by the company be in
your financial model? - ✔✔✔ANSWER-60.6 million non-controlling
interest - ✔✔✔ANSWER-is an expense on the income statement and
equity o the balance sheet
A company has the following information:
• 2013 retained earnings balance of $12 billion
• Net income of $3.5 billion in 2014
• Capex of $200 million in 2014
• Preferred dividends of $100 million in 2014
• Common dividends of $400 million in 2014
What is the retained earnings balance at the end of 2014? -
✔ ✔✔ANSWER-15 billion
in order to find out how much cash is available to pay down short term
debt, such as revolving credit line, you must take -
✔✔✔ANSWER-beginning cash balance + pre-debt cash flows - min.
cash balance - required principal payments of LT and other debt
3
