WALL STREET PREP PREMIUM EXAM WITH
CORRECT AND VERRIFIED ANSWERS
2026/2027 LATEST UPDATE
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 - CORRECT ANSWERS-36.5
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? - CORRECT ANSWERS-65.7
days
Which of the following is true - CORRECT ANSWERS-Coca Cola's brand
name is not reflected as an intangible asset on its balance sheet
Page | 1
,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%
What should the number of shares repurchased by the company be in your
financial model? - CORRECT ANSWERS-60.6 million
non-controlling interest - CORRECT ANSWERS-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? - CORRECT
ANSWERS-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 - CORRECT ANSWERS-beginning
cash balance + pre-debt cash flows - min. cash balance - required principal
payments of LT and other debt
Page | 2
, to calculate interest expense in the future, you should do which of the following
- CORRECT ANSWERS-apply a weighted average interest rate times the
average debt balance over the course of the year
enterprise (transaction) value represents the: - CORRECT ANSWERS-value of
all capital invested in a business
What is generally not considered to be a pre-tax non-recurring (unusual or
infrequent) item? - CORRECT ANSWERS-Extraordinary gains/losses
what is false about depreciation and amortization - CORRECT ANSWERS-
D&A may be classified within interest expense
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 - CORRECT ANSWERS-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 - CORRECT
ANSWERS-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
Page | 3
CORRECT AND VERRIFIED ANSWERS
2026/2027 LATEST UPDATE
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 - CORRECT ANSWERS-36.5
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? - CORRECT ANSWERS-65.7
days
Which of the following is true - CORRECT ANSWERS-Coca Cola's brand
name is not reflected as an intangible asset on its balance sheet
Page | 1
,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%
What should the number of shares repurchased by the company be in your
financial model? - CORRECT ANSWERS-60.6 million
non-controlling interest - CORRECT ANSWERS-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? - CORRECT
ANSWERS-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 - CORRECT ANSWERS-beginning
cash balance + pre-debt cash flows - min. cash balance - required principal
payments of LT and other debt
Page | 2
, to calculate interest expense in the future, you should do which of the following
- CORRECT ANSWERS-apply a weighted average interest rate times the
average debt balance over the course of the year
enterprise (transaction) value represents the: - CORRECT ANSWERS-value of
all capital invested in a business
What is generally not considered to be a pre-tax non-recurring (unusual or
infrequent) item? - CORRECT ANSWERS-Extraordinary gains/losses
what is false about depreciation and amortization - CORRECT ANSWERS-
D&A may be classified within interest expense
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 - CORRECT ANSWERS-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 - CORRECT
ANSWERS-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
Page | 3
