Wall Street Prep Premium Exam | Actual Exam
Questions | 100% Correct Answers | Verified 2024
Version
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
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? - Answer - 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 - Answer - beginning cash balance + pre-debt cash
flows - min. cash balance - required principal payments of LT and other debt
to calculate interest expense in the future, you should do which of the following - Answer
- apply a weighted average interest rate times the average debt balance over the course
of the year
enterprise (transaction) value represents the: - Answer - value of all capital invested in a
business
A debt holder would be primarily concerned with which of the following multiples?
I. Enterprise (Transaction) Value / EBITDA
Questions | 100% Correct Answers | Verified 2024
Version
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
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? - Answer - 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 - Answer - beginning cash balance + pre-debt cash
flows - min. cash balance - required principal payments of LT and other debt
to calculate interest expense in the future, you should do which of the following - Answer
- apply a weighted average interest rate times the average debt balance over the course
of the year
enterprise (transaction) value represents the: - Answer - value of all capital invested in a
business
A debt holder would be primarily concerned with which of the following multiples?
I. Enterprise (Transaction) Value / EBITDA
