Transaction multiples - Study guides, Class notes & Summaries

Adventis Financial Modeling Certification (FMC) Level 2 Exam (New 2023/ 2024 Update) Questions and Verified Answers_ 100% Correct_ Graded A QUESTION Which of the following does not belong with enterprise value in a multiple? Answer: net earnings QUESTION Which of the following pairs belong together? Answer: enterprise value and EBITDA QUESTION Enterprise value is: Answer: similar in theory to transaction value QUESTION what is the formul...

Walk me through a basic LBO model. - ANSWER "In an LBO Model, Step 1 is making assumptions about the Purchase Price, Debt/Equity ratio, Interest Rate on Debt and other variables; you might also assume something about the company's operations, such as Revenue Growth or Margins, depending on how much information you have. Step 2 is to create a Sources & Uses section, which shows how you finance the transaction and what you use the capital for; this also tells you how much Investor Equity ...

What's the point of valuation? Why do you value a company? You value a company to determine its implied value according to your views of it. If you are advising a client company, you might value it so you can tell management the price that it might receive if the company sells But public companies already have market caps and share prices, why bother valuing them? Because a company's market cap and share price reflect its current value according to the market, but the market might be wrong! ...

LBO Questions And Answers Walk me through a basic LBO model. - ANS "In an LBO Model, Step 1 is making assumptions about the Purchase Price, Debt/Equity ratio, Interest Rate on Debt and other variables; you might also assume something about the company's operations, such as Revenue Growth or Margins, depending on how much information you have. Step 2 is to create a Sources & Uses section, which shows how you finance the transaction and what you use the capital for; this also tells you h...

EXCEL CRASH COURSE EXAM [WALL STREET PREP] ACTUAL EXAM 100% [QUESTIONS $ANSWERS] LATEST EXAM 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? - ANS---15 billion in order to find out how much cash is available to pa...

BREAKING INTO WALL STREET EXAM STUDY GUIDE QUESTIONS AND ANSWERS company value - Cash Flow / (Discount Rate - Cash Flow Growth Rate) why do we need the 3 financial statements - estimate cash flow so you can estimate the value of the company order of line items of income statement - revenue - COGS = Gross Profit - Operating Expenses = Operating Income +/- Other Income/Expense = Pretax Income - taxes = net income income statement - tracks revenues and expenses over a specific period; shows ...

Wall Street Prep Exam Questions With Correct Answers Latest Update 2024/2025 (GRADED 100%) what is false about depreciation and amortization D&A may be classified within interest expense Company X's current assets increased by $40 million from while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capital was a decrease of 15 million the final component of an earnings projection model is calculating interest expense....

What makes learning to model real estate assets challenging? Industry limitations to "one size fits all" modeling • Different players interact with real estate financial models in different ways Financial models are key to many real estate functions Such as: Private Equity Brokers Lenders Operators Asset Managers Property Management Formatting and Layout Always assume the model will be used by someone else • Be predictable • Create "plug-and-play" models to increase efficiency Color...

Which of the following statements about a P/E multiple is false? - ANSWERIt is not affected by non-cash expenses Why are acquisition multiples typically higher than comparable companies analysis? - ANSWERAcquisition multiples typically incorporate a premium Enterprise value is - ANSWERSimilar in theory to transaction value What is the formula for equity value? - ANSWERShare price x shares outstanding Which of the following pairs belongs together? - ANSWEREnterprise value and EBITDA Which of...

Investment Banking Interview Questions All Answers Correct What are the four financial statements? 1. Income Statement 2. Balance Sheet 3. Statement of Cash Flows 4. Statement of Retained Earnings What are cash flows from operating activities? Includes the cash effects of transactions involved in calculating net income. What are cash flows from investing activities? Cash from non-operating activities or activities outside the normal scope of business. This involves items classif...