EXAM TRANSACTION COMPS
MODELING WALL STREET PREP
EXAM 2024-2025 BEST FOR
DISTINCTION
What is generally not considered to be a pre-tax non-recurring (unusual or
infrequent) item? (correct answer) Extraordinary gains/losses
what is false about depreciation and amortization (correct 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 (correct 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 (correct 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 (correct
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
(correct 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? (correct 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 (correct 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? (correct answer) 65.7 days
Which of the following is true (correct 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