TRANSACTION COMPS MODELLING WALL STREET
PREP EXAM NEWEST 2024 ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES|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? - ÀNSWER-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 -
ÀNSWER-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? - ÀNSWER-65.7 days
, Which of the following is true - ÀNSWER-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? - ÀNSWER-60.6 million
non-controlling interest - ÀNSWER-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? - ÀNSWER-
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 - ÀNSWER-
PREP EXAM NEWEST 2024 ACTUAL EXAM
QUESTIONS AND CORRECT ANSWERS WITH
RATIONALES|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? - ÀNSWER-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 -
ÀNSWER-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? - ÀNSWER-65.7 days
, Which of the following is true - ÀNSWER-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? - ÀNSWER-60.6 million
non-controlling interest - ÀNSWER-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? - ÀNSWER-
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 - ÀNSWER-
