WALL STREET PREP PREMIUM EXAM WI TH 100
QUESTIONS AND CORRECT ANSWERS (100%
VERIFIED ANSWERS) GRADED A+ 2024 -2025 LATEST
EXAM (NEW!!)/ ALSO CONTAINS 27 EXCEL
QUESTIONS AND ANSWERS FOR YOUR REVIEW
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400 million shares outstanding. The company has net debt of $300 million. After building an earnings model for Company X, you have projected free cash flow for
each year through 2020 as follows:
Year 2014 2015 2016 2017 2018 2019 2020 Free Cash Flow 110 120 150 170 200 250 280
You estimate that the weighted average cost of capital (WACC) for Company X is 10% and assume that free cash flows grow in perpetuity at 3.0% annually beyond 2020, the final projected year. Estimate the present value of the projected free cash flows through 2020, discounted at the stated WACC. Assume all cash flows are
generated at the end of the year (i.e., no mid-year adjustment): - ANSWER-837
million
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400 million shares outstanding. The company has net debt of $300 million. After building an earnings model for Company X, you have projected free
cash flow for each year through 2014 as follows:
Year 2014 2015 2016 2017 2018 2019 2020 Free Cash Flow 110 120 150 170 200 250 280 1 / 3
You estimate that the weighted average cost of capital (WACC) for Company X is 10% and assume that free cash flows grow in perpetuity at 3.0% annually beyond 2020, the final projected year.Calculate Company X's implied Enterprise Value by using the discounted cash
flow method: - ANSWER-2951.2 million
On January 1, 2014, shares of Company X trade at $6.50 per share, with 400 million shares outstanding. The company has net debt of $300 million. After building an earnings model for Company X, you have projected free
cash flow for each year through 2014 as follows:
Year 2014 2015 2016 2017 2018 2019 2020 Free Cash Flow 110 120 150 170 200 250 280
You estimate that the weighted average cost of capital (WACC) for Company X is 10% and assume that free cash flows grow in perpetuity at 3.0% annually beyond 2020, the final projected year.
According to the discounted cash flow valuation method, Company X shares are: -
ANSWER-.13 per share overvalued
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 - ANSWER-a decrease of 15 million
What is generally not considered to be a pre-tax non-recurring (unusual or infrequent) item? - ANSWER-Extraordinary gains/losses 2 / 3
what is false about depreciation and amortization - ANSWER-D&A may be classified within interest expense
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 circular 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
A company has the following information:
• 2014 Revenues of $8 billion • 2014 COGS of $5 billion
- / 3