Exam (elaborations)
WallStreetPrep LBO Questions (LBO Studyset) Answered To Score A+
- Course
- Institution
WallStreetPrep LBO Questions (LBO Studyset) Answered To Score A+
[Show more]
Content preview
Name: Score:38 Multiple choice questions
Term 1 of 38
Which tranche of debt does PIK interest typically apply to?
Mezzanine debt
Revolver debt
Senior debt
Term debt
Term 2 of 38
Which of the options below is an example of multiple arbitrage?
An add-on acquisition is acquired at the same multiple than the initial platform acquisition -
and then immediately has a lower market multiple because the two companies are now one
An add-on acquisition is acquired at a higher multiple than the initial platform acquisition -
and then immediately has the market multiple of the platform company because the two
companies are now one
An add-on acquisition is acquired at the same multiple as the initial platform acquisition -
and then immediately has the market multiple of the platform company because the two
companies are now one
An add-on acquisition is acquired at a cheaper multiple than the initial platform acquisition
- and then immediately has the market multiple of the platform company because the two
companies are now one
,Definition 3 of 38
Cash impact of change in assets: ($200) Cash impact of change in liabilities: $150
Explanation:
To calculate the cash impact of changes in assets, the formula is "previous period MINUS current
period" (i.e., $400 - $600 = ($200)). To calculate the cash impact of changes in liabilities, the
formula is "current period MINUS previous period" (i.e., $550 - $400 = $150)
Given the following fact pattern, calculate the senior leverage ratio and total leverage ratio
for Company F
Revolver 200
Senior Debt 1000
Mezzanine Debt 400
Balance Sheet Cash 300
Total Interest Expense 50
LTM Diligence Adjusted EBITDA 500
LTM Management Adjusted EBITDA 450
Senior leverage ratio: 3.11x Total leverage ratio: 3.56x
Senior leverage ratio: 2.67x Total leverage ratio: 3.56x
Senior leverage ratio: 2.00x Total leverage ratio: 2.80x
Senior leverage ratio: 2.40x Total leverage ratio: 3.20x
Given the following fact pattern, calculate the cash impact of the change in current assets
and current liabilities for Company F for the fiscal year 2020 (note: numbers enclosed in
parenthesis indicate negative numbers - e.g., ($20) is equivalent to -$20)
Fact Pattern:
FY 2019 FY 2020
Current Assets: 400 600
Current Liabilities: 400 550
Cash impact of change in assets: ($200) Cash impact of change in liabilities: $150
Cash impact of change in assets: $200 Cash impact of change in liabilities: ($150)
, Cash impact of change in assets: $200 Cash impact of change in liabilities: $150
Cash impact of change in assets: ($200) Cash impact of change in liabilities: ($150
Which of the following statements is the most ACCURATE regarding the tax structure of
LLCs?
LLCs are not pass-through entities for tax purposes; but the members of the LLC are
responsible for the LLC taxes even if they don't receive any cash
LLCs are not pass-through entities for tax purposes; the members of the LLC are not
responsible for the LLC taxes if they don't receive any cash
LLCs can be pass-through entities for tax purposes; but the members of the LLC are not
responsible for the LLC taxes if they don't receive any cash
LLCs can be pass-through entities for tax purposes; the members of the LLC are
responsible for the LLC taxes even if they don't receive any cash
Which of the options below is the BEST description of covenants?
Rules imposed by the private equity firm, along with calculated metrics that help the
private equity firm keep a check on the financial health of the acquired asset
Rules imposed by company management, along with calculated metrics that help company
management keep a check on the financial health of the company
Rules imposed by the lender, along with calculated metrics that help the lender keep a
check on the financial health of the borrower
Rules imposed by LPs of the private equity firm, along with calculated metrics that help the
LPs keep a check on the financial health of the private equity firm
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller stuuviaa. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now