TRANSACTION COMPS MODELLING WALL STREET PREP EXAM

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TRANSACTION COMPS MODELLING WALL STREET PREP


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EXAM NEWEST 2024 ACTUAL EXAM ALL 50 QUESTIONS




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AND CORRECT DETAILED ANSWERS WITH RATIONALES
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|ALREADY GRADED A+




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If a company has projected revenues of $10 billion, a gross profit margin
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of 65%, and projected SG&A expenses of $2billion, what is the




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company's operating (EBIT) margin? - ANSWER--45%
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A company has the following information, 1. 2014 revenues of $5
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billion,2013 Accounts receivable of $400 million, 2014 accounts




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receivable of $600 million, what are the days sales outstanding -
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ANSWER--36.5




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A company has the following information:
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• 2014 Revenues of $8 billion



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• 2014 COGS of $5 billion
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• 2013 Accounts receivable of $400 million




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• 2014 Accounts receivable of $600 million
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• 2013 Inventories of $1 billion
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• 2014 Inventories of $800 million
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• 2013 Accounts payable of $250 million
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• 2014 Accounts payable of $300 million
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What are the inventory days for the company? - ANSWER--65.7 days
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TRANSACTION COMPS MODELLING WALL STREET PREP


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EXAM NEWEST 2024 ACTUAL EXAM ALL 50 QUESTIONS




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AND CORRECT DETAILED ANSWERS WITH RATIONALES
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|ALREADY GRADED A+




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Which of the following is true - ANSWER--Coca Cola's brand name is




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not reflected as an intangible asset on its balance sheet
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A company has the following information:
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• 2014 share repurchase plan of $4 billion




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• Average share price of $60 for the year 2013




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• Expected EPS growth for 2014 of 10%
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What should the number of shares repurchased by the company be in




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your financial model? - ANSWER--60.6 million
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non-controlling interest - ANSWER--is an expense on the income



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statement and equity o the balance sheet
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A company has the following information:
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• 2013 retained earnings balance of $12 billion sh
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• Net income of $3.5 billion in 2014
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• Capex of $200 million in 2014
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• Preferred dividends of $100 million in 2014
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• Common dividends of $400 million in 2014
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What is the retained earnings balance at the end of 2014? - ANSWER--
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15 billion
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TRANSACTION COMPS MODELLING WALL STREET PREP


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EXAM NEWEST 2024 ACTUAL EXAM ALL 50 QUESTIONS




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AND CORRECT DETAILED ANSWERS WITH RATIONALES
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|ALREADY GRADED A+




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in order to find out how much cash is available to pay down short term




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debt, such as revolving credit line, you must take - ANSWER--
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beginning cash balance + pre-debt cash flows - min. cash balance -




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required principal payments of LT and other debt
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to calculate interest expense in the future, you should do which of the
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following - ANSWER--apply a weighted average interest rate times the




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average debt balance over the course of the year
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enterprise (transaction) value represents the: - ANSWER--value of all
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capital invested in a business




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A debt holder would be primarily concerned with which of the following
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multiples?
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I. Enterprise (Transaction) Value / EBITDA
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II. Price/Earnings sh
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III. Enterprise (Transaction) Value / Sales - ANSWER--1 and 3 only
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On January 1, 2014, shares of Company X trade at $6.50 per share, with
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400 million shares outstanding. The company has net debt of $300
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million. After building an earnings model for Company X, you have
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projected free cash flow for each year through 2020 as follows:
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