Wall Street Prep Premium Exam:Transaction Comps Modeling
Wall Street Prep Exam QUESTIONS WITH WELL VERIFIED
ANSWERS
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 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
a 10-q financial filing has all of the following characteristics except - answer☑️✔️..issued four
times a year.
Depreciation Expense found in the SG&A 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
SG&A 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:
• 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%
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
Wall Street Prep Exam QUESTIONS WITH WELL VERIFIED
ANSWERS
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 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
a 10-q financial filing has all of the following characteristics except - answer☑️✔️..issued four
times a year.
Depreciation Expense found in the SG&A 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
SG&A 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:
• 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%
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
