TRANSACTION COMPS MODELLING WALL STREET PREP EXAM NEWE
2024 ACTUAL EXAM ALL 50 QUESTIONS AND CORRECT ANSWERS
Study online at https://quizlet.com/_fw83vq
1. What is generally not considered to be a pre-tax Extraordinary
non-recurring (unusual or infrequent) item? gains/losses
2. what is false about depreciation and amortization D&A may be classi-
fied within interest ex-
pense
3. Company X's current assets increased by $40 mil- a decrease of 15 mil-
lion from 2007-2008 while the companies current lion
liabilities increased by $25 million over the same
period. the cash impact of the change in working
capital was
4. the final component of an earnings projection interest expense af-
model is calculating interest expense. the calcu- fects net income,
lation may create a circular reference because which affects FCF,
which affects the
amount of debt a
company pays down,
which, in turn affects
the interest expense,
hence the circular ref-
erence
5. a 10-q financial filing has all of the following char- issued four times a
acteristics except year.
6. Depreciation Expense found in the SG&A line of computers used by
the income statement for a manufacturing firm the accounting depart-
would most likely be attributable to which of the ment
following
7. If a company has projected revenues of $10 billion, 45%
a gross profit margin of 65%, and projected SG&A
expenses of $2billion, what is the company's op-
erating (EBIT) margin?
8. A company has the following information, 1. 2014 36.5
revenues of $5 billion,2013 Accounts receivable
, TRANSACTION COMPS MODELLING WALL STREET PREP EXAM NEWE
2024 ACTUAL EXAM ALL 50 QUESTIONS AND CORRECT ANSWERS
Study online at https://quizlet.com/_fw83vq
of $400 million, 2014 accounts receivable of $600
million, what are the days sales outstanding
9. A company has the following information: 65.7 days
• 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?
10. Which of the following is true Coca Cola's brand
name is not reflected
as an intangible asset
on its balance sheet
11. A company has the following information: 60.6 million
• 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?
12. non-controlling interest is an expense on the
income statement and
equity o the balance
sheet
13. A company has the following information: 15 billion
• 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?
2024 ACTUAL EXAM ALL 50 QUESTIONS AND CORRECT ANSWERS
Study online at https://quizlet.com/_fw83vq
1. What is generally not considered to be a pre-tax Extraordinary
non-recurring (unusual or infrequent) item? gains/losses
2. what is false about depreciation and amortization D&A may be classi-
fied within interest ex-
pense
3. Company X's current assets increased by $40 mil- a decrease of 15 mil-
lion from 2007-2008 while the companies current lion
liabilities increased by $25 million over the same
period. the cash impact of the change in working
capital was
4. the final component of an earnings projection interest expense af-
model is calculating interest expense. the calcu- fects net income,
lation may create a circular reference because which affects FCF,
which affects the
amount of debt a
company pays down,
which, in turn affects
the interest expense,
hence the circular ref-
erence
5. a 10-q financial filing has all of the following char- issued four times a
acteristics except year.
6. Depreciation Expense found in the SG&A line of computers used by
the income statement for a manufacturing firm the accounting depart-
would most likely be attributable to which of the ment
following
7. If a company has projected revenues of $10 billion, 45%
a gross profit margin of 65%, and projected SG&A
expenses of $2billion, what is the company's op-
erating (EBIT) margin?
8. A company has the following information, 1. 2014 36.5
revenues of $5 billion,2013 Accounts receivable
, TRANSACTION COMPS MODELLING WALL STREET PREP EXAM NEWE
2024 ACTUAL EXAM ALL 50 QUESTIONS AND CORRECT ANSWERS
Study online at https://quizlet.com/_fw83vq
of $400 million, 2014 accounts receivable of $600
million, what are the days sales outstanding
9. A company has the following information: 65.7 days
• 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?
10. Which of the following is true Coca Cola's brand
name is not reflected
as an intangible asset
on its balance sheet
11. A company has the following information: 60.6 million
• 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?
12. non-controlling interest is an expense on the
income statement and
equity o the balance
sheet
13. A company has the following information: 15 billion
• 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?
