Wall Street Prep Premium Exam Questions with 100% CORRECT ANSWERs
Question 1: What is generally not considered to be a pre-tax
non-recurring (unusual or infrequent) item?
CORRECT ANSWER : Extraordinary gains/losses
Question 2: What is false about depreciation and
amortization?
CORRECT ANSWER : D&A may be classified within
interest expense
Question 3: Company X's current assets increased by $40
million from 2007-2008 while the companies current liabilities increased by $25 million over the same period. the cash impact of the change in working capital was
CORRECT ANSWER : a decrease of 15 million
Question 4: The final component of an earnings projection
model is calculating interest expense. the calculation may create a circular reference because
CORRECT 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 circular reference
Question 5: A 10-q financial filing has all of the following
characteristics except
CORRECT ANSWER : issued four times a year.
Question 6: 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
CORRECT ANSWER : computers used by the accounting
department
Question 7: 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?
CORRECT ANSWER : 45%
Question 8: 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
CORRECT ANSWER : 36.5
Question 9: 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?
CORRECT ANSWER : 65.7 days
Question 10: Which of the following is true
CORRECT ANSWER : Coca Cola's brand name is not
reflected as an intangible asset on its balance sheet
Question 11: 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?
CORRECT ANSWER : 60.6 million
Question 12: We have an expert-written solution to this
problem!non-controlling interest