TRANSACTION COMPS MODELLING WALL STREET PREP EXAM NEWEST 2024 ACTUAL EXAM ALL 50 QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS) |ALREADY GRADED A+

TRANSACTION COMPS MODELLING WALL STREET

PREP EXAM NEWEST 2024 ACTUAL EXAM ALL 50

QUESTIONS AND CORRECT DETAILED ANSWERS

WITH RATIONALES (VERIFIED ANSWERS)

|ALREADY 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? - 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

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? - ANSWER- 65.7 days

Which of the following is true - ANSWER- 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? - ANSWER- 60.6 million

non-controlling interest - ANSWER- 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? - ANSWER15 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 - ANSWER- beginning