Trading Comps Modeling Exam Wall
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Exam Questions and Answers Graded A+
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
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,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
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, • 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
• 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
• Net income of $3.5 billion in 2014
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Street Prep / Wall Street Prep Premium
Exam Questions and Answers Graded A+
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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, • 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
• 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
• Net income of $3.5 billion in 2014
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
