WALL STREET PREP PREMIUM ACTUAL
EXAM QUESTIONS WITH VERIFIED
SOLUTIONS GRADED A+
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
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,• 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
• 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? --CORRECT ANSWER--60.6 million
non-controlling interest --CORRECT 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
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, • 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? --
CORRECT ANSWER--15 billion
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,
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EXAM QUESTIONS WITH VERIFIED
SOLUTIONS GRADED A+
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
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,• 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
• 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? --CORRECT ANSWER--60.6 million
non-controlling interest --CORRECT 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
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, • 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? --
CORRECT ANSWER--15 billion
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,
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