WALL STREET PREP EXCEL DCF MODELING TEST - (90 QUESTIONS) UP-TO-DATE
ACTUAL EXAM QUESTIONS AND 100% ACCURATE SOLUTIONS | VERIFIED ANSWERS -
INSTANT PDF DOWNLOAD
Examiner/Administrator: Wall Street Prep
CANDIDATE INFORMATION
Candidate Name: _______________________________
Candidate ID: _________________________________
Date: ________________________________________
Examination Centre: ___________________________
INSTRUCTIONS TO CANDIDATES
• This assessment evaluates your ability to construct, audit, and interpret Discounted
Cash Flow (DCF) models in Excel under time-constrained conditions.
• You are required to answer approximately 90 questions within a total time allocation of
120 minutes.
• Calculators and Excel-based logic are assumed; focus on applied reasoning rather than
memorization.
• All answers must reflect best practices in financial modeling, including accuracy, clarity,
,and consistency.
• Select the most appropriate answer for each question.
CORE COMPETENCY DOMAINS
Financial Statement Forecasting
Free Cash Flow Modeling (FCFF & FCFE)
Discount Rate Estimation (WACC)
Terminal Value Calculation
Excel Modeling Best Practices
Sensitivity & Scenario Analysis
Valuation Interpretation
This examination is a professionally designed simulation inspired by industry-standard
financial modeling assessments. It is intended solely for educational and preparation
purposes and does not represent any official or proprietary examination content.
This Excel-based DCF modeling assessment tests candidates’ ability to integrate financial
theory with spreadsheet execution. Candidates are expected to demonstrate proficiency
in projecting financial statements, calculating free cash flows, estimating discount rates,
,and deriving enterprise and equity value. Emphasis is placed on practical application,
logical structuring, and error identification within financial models.
Q1. A company’s EBIT is projected at $100 million, tax rate is 25%, depreciation is $20
million, CapEx is $30 million, and change in NWC is +$10 million. What is FCFF?
A. $65 million
B. $55 million
C. $60 million
D. $70 million
Correct Answer: 🔴 B. $55 million
Explanation: 🟡 FCFF = EBIT(1–T) + D&A – CapEx – ΔNWC = 100(0.75) + 20 – 30 – 10 = 75
+ 20 – 30 – 10 = 55.
A is incorrect: ignores ΔNWC.
C is incorrect: miscalculates tax impact.
D is incorrect: ignores CapEx deduction.
Q2. In Excel, which formula ensures absolute referencing for cell B2?
A. B2
B. $B2
C. B$2
, D. $B$2
Correct Answer: 🔴 D. $B$2
Explanation: 🟡 Absolute references lock both row and column.
A is fully relative.
B locks column only.
C locks row only.
Q3. Which component is NOT included in WACC?
A. Cost of equity
B. Cost of debt
C. Preferred dividends
D. Operating margin
Correct Answer: 🔴 D. Operating margin
Explanation: 🟡 WACC includes financing costs, not operating metrics.
A, B, C are financing components.
D relates to operations, not capital structure.
Q4. If Beta increases, holding everything else constant, what happens to WACC?
A. Decreases
B. Increases
ACTUAL EXAM QUESTIONS AND 100% ACCURATE SOLUTIONS | VERIFIED ANSWERS -
INSTANT PDF DOWNLOAD
Examiner/Administrator: Wall Street Prep
CANDIDATE INFORMATION
Candidate Name: _______________________________
Candidate ID: _________________________________
Date: ________________________________________
Examination Centre: ___________________________
INSTRUCTIONS TO CANDIDATES
• This assessment evaluates your ability to construct, audit, and interpret Discounted
Cash Flow (DCF) models in Excel under time-constrained conditions.
• You are required to answer approximately 90 questions within a total time allocation of
120 minutes.
• Calculators and Excel-based logic are assumed; focus on applied reasoning rather than
memorization.
• All answers must reflect best practices in financial modeling, including accuracy, clarity,
,and consistency.
• Select the most appropriate answer for each question.
CORE COMPETENCY DOMAINS
Financial Statement Forecasting
Free Cash Flow Modeling (FCFF & FCFE)
Discount Rate Estimation (WACC)
Terminal Value Calculation
Excel Modeling Best Practices
Sensitivity & Scenario Analysis
Valuation Interpretation
This examination is a professionally designed simulation inspired by industry-standard
financial modeling assessments. It is intended solely for educational and preparation
purposes and does not represent any official or proprietary examination content.
This Excel-based DCF modeling assessment tests candidates’ ability to integrate financial
theory with spreadsheet execution. Candidates are expected to demonstrate proficiency
in projecting financial statements, calculating free cash flows, estimating discount rates,
,and deriving enterprise and equity value. Emphasis is placed on practical application,
logical structuring, and error identification within financial models.
Q1. A company’s EBIT is projected at $100 million, tax rate is 25%, depreciation is $20
million, CapEx is $30 million, and change in NWC is +$10 million. What is FCFF?
A. $65 million
B. $55 million
C. $60 million
D. $70 million
Correct Answer: 🔴 B. $55 million
Explanation: 🟡 FCFF = EBIT(1–T) + D&A – CapEx – ΔNWC = 100(0.75) + 20 – 30 – 10 = 75
+ 20 – 30 – 10 = 55.
A is incorrect: ignores ΔNWC.
C is incorrect: miscalculates tax impact.
D is incorrect: ignores CapEx deduction.
Q2. In Excel, which formula ensures absolute referencing for cell B2?
A. B2
B. $B2
C. B$2
, D. $B$2
Correct Answer: 🔴 D. $B$2
Explanation: 🟡 Absolute references lock both row and column.
A is fully relative.
B locks column only.
C locks row only.
Q3. Which component is NOT included in WACC?
A. Cost of equity
B. Cost of debt
C. Preferred dividends
D. Operating margin
Correct Answer: 🔴 D. Operating margin
Explanation: 🟡 WACC includes financing costs, not operating metrics.
A, B, C are financing components.
D relates to operations, not capital structure.
Q4. If Beta increases, holding everything else constant, what happens to WACC?
A. Decreases
B. Increases
