Financial modelling exam - Study guides, Class notes & Summaries

LBO Modeling / LBO Modelling Exam from Wall Street Prep 2024 PASS A+ What do LBO FCF's tell us? - ANSWER-Tells you how much cash is available to repay *debt principal* each year after already paying for normal expenses and debt interest Can a PE firm earn a solid return if it buys a company for $1 billion and sells it for $1 billion 5 years? - ANSWER-Yes, if it uses a certain amount of debt to purchase the company- if they raise $500m, and use $500 cash, the company's FCF's are ...

LBO Modelling Exam Questions With 100% Correct Answers What is the biggest difference between an LBO and an M&A? - answerUnlike an M&A, we're not assuming the PE firm will keep the company long term What makes a good LBO candidate? - answer-opportunity to cut costs -stable cash flows -good base of assets -undervalued/low-risk Walk me through a basic LBO model. - answer1. Make assumptions about the Purchase Price and how much debt to use 2. Create a Financial Sources & Uses section 3....

LBO Modelling Exam Questions With 100% Correct Answers What is the biggest difference between an LBO and an M&A? - answerUnlike an M&A, we're not assuming the PE firm will keep the company long term What makes a good LBO candidate? - answer-opportunity to cut costs -stable cash flows -good base of assets -undervalued/low-risk Walk me through a basic LBO model. - answer1. Make assumptions about the Purchase Price and how much debt to use 2. Create a Financial Sources & Uses section 3....

DISCOUNTED CASHFLOWS MODELLING EXAM WALL STREET PREP Get certification with the help of this questions and answers

LBO Modelling Exam Questions With 100% Correct Answers What is the biggest difference between an LBO and an M&A? - answerUnlike an M&A, we're not assuming the PE firm will keep the company long term What makes a good LBO candidate? - answer-opportunity to cut costs -stable cash flows -good base of assets -undervalued/low-risk Walk me through a basic LBO model. - answer1. Make assumptions about the Purchase Price and how much debt to use 2. Create a Financial Sources & Uses section 3....

Which are the two points that identify the break even unit sales?1. Where the Sales revenue line crosses the Total costs line 2. Where accounting profit hits zero and changes from negative to positive What is the formula for accounting profit?Revenue - Total Costs, because Describe and Explain the relationship between NPV and Year 1 Unit SalesThey have a direct relationship because PV of Net cash flows rises as year 1 unit sales rises Is NPV more sensitive to Year 1 Unit sales or year 2 ...

LBO MODELLING EXAM FROM WALL STREET PREP 2024 How do you use an LBO model to value a company, and why do we sometimes say that it sets the "floor valuation" for the company? - ANSYou use it to value a company by setting a targeted IRR (e.g., 25%) and then back-solving to determine what purchase price the PE firm could pay to achieve that IRR. This is sometimes called a "floor valuation" because PE firms almost always pay less for a company than strategic acquirers would. Give ...

This is the M&A MODELING EXAM | WALL STREET PREP

BPK 381 Final Exam 260 Questions with Verified Answers What is motivation? - CORRECT ANSWER The process that controls both the direction and strength of choice made by a person among alternative courses of actions -Vroom, 1964 What are the 5 critical concepts of motivation? - CORRECT ANSWER ∙Direction (positive or negative motivation) ∙Intensity (strong or moderate) ∙Persistence (how long does that behaviour change last, ex. hawthorne effect) ∙Behaviour (action from which we in...

VCE Business Management Unit 3 & 4 Exam Revision Questions With Solutions VCE Business Management Unit 3 & 4 Exam Revision What is a business? A lawful organization involved in the provision of goods and/or services to consumers to earn a profit. business type - sole trader The individual owner of a business who is entitled to keeping all profits, as they are legally and financially responsible for all aspects of the business but are liable for all losses. - Owner has full c...