100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
2024 Trading Comps Modeling Exam Wall Street Prep / Wall Street Prep Premium Exam Transaction Comps Modeling Wall Street Prep Exam GRADEDA+ $22.49   Add to cart
Quickly navigate to
Preview
  2.  
  3. 2024 Trading Comps Modeling
  4.  
  5. 2024 Trading Comps Modeling

Exam (elaborations)

2024 Trading Comps Modeling Exam Wall Street Prep / Wall Street Prep Premium Exam Transaction Comps Modeling Wall Street Prep Exam GRADEDA+
 15 views  0 purchase
  • Course
  • 2024 Trading Comps Modeling
  • Institution
  • 2024 Trading Comps Modeling

2024 Trading Comps Modeling Exam Wall Street Prep / Wall Street Prep Premium Exam Transaction Comps Modeling Wall Street Prep Exam GRADEDA+

Preview 3 out of 17  pages

Document information

  • June 10, 2024
  • 17
  • 2023/2024
  • Exam (elaborations)
  • Questions & answers

Subjects

  • 2024 trading comps modeling exam wall street prep

Written for

  • 2024 Trading Comps Modeling
  • 2024 Trading Comps Modeling

Seller

avatar-seller
tutorWADE

Reviews received

Content preview

2024 Trading Comps Modeling Exam Wall
Street Prep / Wall Street Prep Premium Exam
Transaction Comps Modeling Wall Street Prep
Exam GRADED A+




the terminal value of a business that grows indefinitely is calculated as follows -
✔✔✔ ANSWER -cash flow from period "t+1" divided by (discount rate-growth rate)

the two-stage DCF model is: - ✔✔✔ ANSWER -where stage 1 is an explicit projection of
free cash flows (generally for 5-10 years), and
1 / 3

stage 2 is a lump -sum estimate of the cash flows beyond the explicit forecast period

disadvantages of a DCF do not include - ✔✔✔ ANSWER -free cash flows over the
first 5-10 year period represent a significant portion of value and are highly sensitive to
valuation assumptions

the typical sell -side process - ✔✔✔ ANSWER -shorter than the buy side, buyer secures
financing, and doesn't involve id'ing potential issues to address such as ownership and
unusual equity structures, liabilities, etc.

While equity contribution went as low as the single digits in the 1980's, the current split
between equity and debt in an LBO deal is best characterized as: - ✔✔✔ ANSWER -
Equity - 35%; Debt 65%

What is generally not considered to be a pre-tax non-recurring (unusual or infrequent)
item? - ✔✔✔ ANSWER -Extraordinary gains/losses

what is false about depreciation and amortization - ✔✔✔ 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
2 / 3

million over the same period. the cash impact of the change in working capital was -
✔✔✔ 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 - ✔✔✔ 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 circu lar
reference

a 10-q financial filing has all of the following characteristics except -
✔✔✔ 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 -
✔✔✔ 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? - ✔✔✔ 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 -
✔✔✔ ANSWER -36.5 Powered by TCPDF (www.tcpdf.org)
3 / 3

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 tutorWADE. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $22.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

73918 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$22.49
  • (0)
  Add to cart