LBO Modeling Exam from Wall
Street Prep 2024 / Wall Street
Prep Premium Exam
Transaction Comps Modeling
Wall Street Prep Exam 2024
GRADED A+
,What is generally not considered to be a pre-tax non-
recurring (unusual or infrequent) item? - ANS-Extraordinary
gains/losses
what is false about depreciation and amortization - ANS-
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 - ANS-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 - ANS-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 - ANS-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 - ANS-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? -
ANS-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 - ANS-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
Street Prep 2024 / Wall Street
Prep Premium Exam
Transaction Comps Modeling
Wall Street Prep Exam 2024
GRADED A+
,What is generally not considered to be a pre-tax non-
recurring (unusual or infrequent) item? - ANS-Extraordinary
gains/losses
what is false about depreciation and amortization - ANS-
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 - ANS-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 - ANS-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 - ANS-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 - ANS-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? -
ANS-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 - ANS-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
