TRANSACTION COMPS MODELLING WALL STREET PREP
EXAM NEWEST 2024 ACTUAL EXAM ALL 100 QUESTIONS
AND CORRECT DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) |ALREADY GRADED A+
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
, II. Price/Earnings
III. Enterprise (Transaction) Value / Sales - answer-1 and 3 only
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400
million shares outstanding. The company has net debt of $300 million. After
building an earnings model for Company X, you have projected free cash flow for
each year through 2020 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow 110 120 150 170 200 250 280
You estimate that the weighted average cost of capital (WACC) for Company X is
10% and assume that free cash flows grow in perpetuity at 3.0% annually beyond
2020, the final projected year. Estimate the present value of the projected free
cash flows through 2020, discounted at the stated WACC. Assume all cash flows
are generated at the end of the year (i.e., no mid-year adjustment): - answer-837
million
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400
million shares outstanding. The
company has net debt of $300 million. After building an earnings model for
Company X, you have projected free
cash flow for each year through 2014 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow 110 120 150 170 200 250 280
EXAM NEWEST 2024 ACTUAL EXAM ALL 100 QUESTIONS
AND CORRECT DETAILED ANSWERS WITH RATIONALES
(VERIFIED ANSWERS) |ALREADY GRADED A+
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
, II. Price/Earnings
III. Enterprise (Transaction) Value / Sales - answer-1 and 3 only
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400
million shares outstanding. The company has net debt of $300 million. After
building an earnings model for Company X, you have projected free cash flow for
each year through 2020 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow 110 120 150 170 200 250 280
You estimate that the weighted average cost of capital (WACC) for Company X is
10% and assume that free cash flows grow in perpetuity at 3.0% annually beyond
2020, the final projected year. Estimate the present value of the projected free
cash flows through 2020, discounted at the stated WACC. Assume all cash flows
are generated at the end of the year (i.e., no mid-year adjustment): - answer-837
million
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400
million shares outstanding. The
company has net debt of $300 million. After building an earnings model for
Company X, you have projected free
cash flow for each year through 2014 as follows:
Year 2014 2015 2016 2017 2018 2019 2020
Free Cash Flow 110 120 150 170 200 250 280
